MPs told personal injury claims driving car insurance costs

Members of Parliament have recently been told that an uptick in personal injury claims, some of which are fraudulent, have resulted in UK motorists facing huge car insurance premium hikes.

The Transport Select Committee recently heard figures that, partly due to accident claims, premium hikes would continue into the future indefinitely.  Over the past year this phenomenon has already resulted in a 40 per cent increase to premiums for all but young drivers, who lived to see an increase of 51 per cent on average.

An average premium, according to released statistical data, was as high as £791 this October.  Last year’s premiums were only £568 in comparison.

EMB Consultancy representative Duncan Anderson stood before MPs in order to make his claim that if personal injury compensation claims continue to increase at their present rate, the costs passed on to the consumer will result in even higher premiums.

Claims due to bodily injury have increased at a 30 per cent rate, Mr Anderson stated.  Moreover other types of claims were growing by approximately 5 per cent yearly.

Costs associated with claims may rise anywhere from 15 to 20 per cent, continued Mr Anderson.  Of course these costs will carry over into higher premiums yet again.  ”

Edmund King, current president of the AA, told the Committee that such rises were simply impossible to sustain for any given length of time.

The lion’s share of the blame rests solely on claims management firms that seem to be the main culprit behind the inflation of insurance costs lately.  Behaviours such as seeking exorbitant personal injury claims damages were but one tactic deployed by such management firms.

One after another, a cavalcade of witnesses told the Committee that these firms were raking in the cash on relatively minor accidents by claiming whiplash or some other personal injury basis.

Leave a comment

Your email address will not be published.

Back to Top ↑