Skip advert
Advertisement

Whiplash crackdown will save drivers £35 a year on insurance

The Government has announced it will ban claims without medical evidence and introduce a cap on insurance payouts

Whiplash injury insurance claims

The Government is introducing new rules to stem the rising cost of car insurance by clamping down on fraudulent whiplash claims.

In today’s parliamentary opening speech the Queen said: “Legislation will be introduced to modernise the court system and to help reduce motor insurance premiums.”

• Best car insurance companies 2017

Advertisement - Article continues below

A new Civil Liability Bill will save motorists an estimated £35 a year and includes a ban on drivers making claims without medical evidence and a fixed tariff of compensation for whiplash injuries with a duration of up to two years.

Claims for whiplash injuries after car crashes have risen 50 per cent in the last decade with premiums jumping an average £110 in the last year alone.

The Government launched a consultation on the bill in November 2016 with proposals to “reduce the unacceptably high number of whiplash claims and allow insurers to cut premiums”. The consultation proposed a compensation cap of £425, with the average payout currently £1,850.

The consultation also set out to raise the limit for compensation in the small claims court for all personal injury claims from £1,000 to £5,000 but it’s not yet clear whether this will be included in the Civil Liability Bill.

When the consultation was launched the then-Justice Secretary Liz Truss said: “For too long some have exploited a rampant compensation culture and seen whiplash claims an easy payday, driving up costs for millions of law-abiding motorists.

“These reforms will crack down on minor, exaggerated and fraudulent claims. Insurers have promised to put the cash saved back in the pockets of the country’s drivers.”

Do you think these mesures will curb the problem of wiplash claims? Let us know in the comments...

Skip advert
Advertisement
Skip advert
Advertisement

Recommended

Car finance scandal: Supreme Court hearing could halve number of claimants
Finance contract, car key and calculator on desk

Car finance scandal: Supreme Court hearing could halve number of claimants

Scandal involving car finance commission could see motorists entitled to billions of pounds in payouts
News
19 Dec 2024
Dieselgate is back! Thousands of cars could be recalled as scandal returns
Emissions tests questioned

Dieselgate is back! Thousands of cars could be recalled as scandal returns

The DfT is currently investigating as many as 47 models across several brands that are suspected to use diesel defeat devices
News
14 Nov 2024
MoT failure rate is worse for vans than cars
MOT

MoT failure rate is worse for vans than cars

More than a third of light commercials failed their first MoT last year, new figures show
News
12 Nov 2024
Paris mayor says ‘non’ to through traffic with plans to fine drivers
Renault Zoe being driven in Paris

Paris mayor says ‘non’ to through traffic with plans to fine drivers

Drivers entering Paris city centre will have to prove residency or a valid destination to avoid a fine
News
5 Nov 2024

Most Popular

Driver whose towbar voided his insurance wins payout
Towbar

Driver whose towbar voided his insurance wins payout

Allianz tells Auto Express it was ‘right in principle’, but has agreed to cover the claim in full
News
20 Dec 2024
Kia Sportage alternatives: cars you could buy instead of this family favourite
Kia Sportage alternatives - header image

Kia Sportage alternatives: cars you could buy instead of this family favourite

Kia’s multi-award winning SUV is the apple of plenty of families’ eyes, but it might not be for everyone. We’ve searched high and low to find some tal…
Features
21 Dec 2024
Car Deal of the Day: Retro Renault 5 for just £182 a month at 0 per cent APR
Renault 5 - front cornering

Car Deal of the Day: Retro Renault 5 for just £182 a month at 0 per cent APR

The Renault 5 is back and it isn’t as expensive as you might have expected. It’s our Deal of the Day for 23 December
News
23 Dec 2024