Whiplash Laws Could Make Insurance Cheaper

Tue 8th Jun 2021

The number of fraudulent car insurance claims is expected to drop as the government introduces new measures which will make it more difficult to claim for a whiplash injury in an accident.

The changes to the car insurance laws will see medical evidence a mandatory requirement on all whiplash claims, with the new rules coming into force at the start of this month. 

Despite the government claiming that the UK has the safest roads in Europe, road traffic accident claims have jumped by 40 per cent in the last 15 years, and in the last financial records for 2019-20 there were thought to be 550,00 claims.

By stamping out fraudulent and frivolous claims, it is expected to save the industry in the region of £1.2bn, and with insurers claiming to pass on those savings to the motorists, it could cut premiums by £35 a year.

"For too long, the system for making whiplash claims has been open to abuse by individuals looking for an easy payday - with ordinary motorists paying the price," said Lord Chancellor Robert Buckland.

"Our changes, which come into force today, will put an end to this greedy opportunism and ultimately see savings put back into the pockets of the country's drivers."

The changes to the law will also see the introduction of a new digital portal for all personal injury claims valued at under £5,000, doing away with the need for expensive lawyers and wasting valuable court time.

"There are almost as many lurid headlines about whiplash claims as there are claims themselves," said Steve Gooding, director of the RAC Foundation.

"This new system should mean legitimate cases are easier and quicker to deal with, fraudulent claims are more likely to fail and all drivers benefit from decreases in their insurance premiums."