Whiplash soars
Motorists are being warned that it has never been more important to shop around for the best insurance deal as
personal injury claims send premiums soaring.
Industry experts predict that car insurance premiums could rise by a further 20% during 2009, due to ever increasing whiplash injuries.
However, many whiplash claims go undefended because of heavy court costs, so as a result insurance companies have to shell out billions of pounds a year in compensation.
The average whiplash claim now accounts for £66 for every motor policy in the UK. The only way to reduce premiums is to purchase a smaller car and avoid automatic policy renewals.
Drivers who mistakenly believe that they will gain a loyalty bonus or discount are actually the ones who end up paying the most because their premiums automatically go up and down. Therefore, drivers are being urged to shop around for their car insurance.
Simon Douglas, AA director of insurance said that several factors are driving up premiums including fraud and the whiplash bill reaching 40% higher than anywhere else in Europe.
More than 430,000 people claimed for whiplash last year, which now accounts for two thirds of all personal injury claims in the UK.
Douglas said: “Insurers now pay out £105 for every £100 received in premiums. There are suggestions of premium increases of up to 20 per cent this year.”
Updated on 19/01/2009