Are car insurers encouraging fraud and exaggeration?

The Transport Select Committee has accused motor insurance companies of fanning the flames of fraud and personal injury exaggeration. This hits close to the bone for many insurance payers, as their premiums are inflated considerably by whiplash claims.

Although the insurance industry has denied encouraging fraud, it does admit that reforms need to be made, as these companies have often accepted claims without full scrutiny of the case. Why? Because they want to avoid going to court, as it’s more expensive for them.

UK Whiplash Claims

In fact, the UK is being called ‘the whiplash capital of the world.’ Between 2012 and 2013, no less than 477,000 whiplash claims were made. This is an improvement on the 567,000 of 2010 to 2011. Either way, this is a considerable sum.

In the UK, 78% of low value personal injury claims are whiplash-orientated. When you compare this with the rest of Europe – at 48% - we begin to see a problem.

MPs say that no whiplash claim should be accepted without evidence. This, in itself is problematic, however, as whiplash is famously hard to prove. MPs want to at least see evidence that the claimant went to A&E or to see a doctor, after the accident.

That said, fortunately, insurance premiums do seem to be falling. On average, they have decreased by 34%. However, more needs to be done to bring inflated premiums down even further. Whiplash is said to cost UK drivers £2bn a year – that means that the average individual is paying £90 more than they should.

Referral fees have been outlawed, so the government expects to see a dramatic decrease in whiplash claims over the next few years. MPs are looking to further reduce the numbers by slashing the amount of time you have to claim from 3 years to 1. They also believe that claims of between £1,000 and £5,000 shouldn’t be allowed in the small claims court.

Have You Suffered From Whiplash?

For car accident claims in Preston, and throughout the country, it’s important to get legal advice. Whiplash can come on by degrees. You may not notice it until the following morning, and the pain and discomfort can increase with time. Make sure you see a medical specialist, as whiplash can make life difficult, from not being able to sleep, to suffering with stiffness and pain.

Follow all the doctor’s instructions and get in touch with a whiplash law firm. A solicitor can tell you if you have a strong enough case or not. From this, you may be able to receive compensation, if the accident wasn’t your fault. Seeing as you may need to take unpaid days off work, it’s crucial that you don’t pay out of your pocket for an incident that wasn’t your fault.

In the meantime, rest up! Although whiplash can be incredibly uncomfortable, it does subside with time. Get under your duvet and relax.