Rising Whiplash Claims Push Up Prices of Car Insurance

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Mar 13, 2012, 05:00 ET

LONDON, March 13, 2012 /PRNewswire/ --

Government pledge to stamp out trivial claims and 'compensation culture'

Car insurance premiums are soaring because of a rise in the number of claims for minor injuries such as whiplash.

Prime Minister David Cameron recently pledged to tackle the country's 'compensation culture' and reduce the number of insurance claims for minor accidents. Downing Street dubbed the UK 'the whiplash capital of Europe' because of the amount of claims.

Although the number of car accidents is falling, claims for whiplash have gone up by more than a third in the past three years. And it's estimated that these so-called trivial claims are pushing up the average premium by around £90 per year.

Cameron held a summit with the Association of British Insurers (ABI) and leading insurance companies to discuss how the claims could be reduced, with a call for more medical evidence and an increase in the threshold for claims among the measures being discussed.

Nick Starling of the ABI welcomes the initiative to restrict whiplash claims, which costs the insurance industry around £2 billion a year.** "There is one whiplash claim every minute of every day in this country," he says. "The problem is that if someone presents themselves with a medical certificate saying they have got whiplash, the insurance company would have to prove that they don't have whiplash, and that's an extremely difficult thing to do."

It's costly for insurance companies to challenge claims for injuries such as whiplash, as the pain caused and the effect they have on the victim's life can be subjective.

Whiplash occurs when the ligaments in the neck are sprained, and is usually caused by a sudden movement of the head. Symptoms include pain, stiffness and the inability to move the neck. A car collision, particularly from behind, can lead to whiplash - even at low speeds.

Recovery time varies from a few weeks to several months or even years. One study revealed that although the average recovery time is 32 days, 12% of patients with whiplash still hadn't fully recovered six months later.***

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*Source: http://www.moneyexpert.com

**Source: http://www.metro.co.uk

***Source: http://www.nhs.uk

Lauren Baldwin, Email: [email protected], Tel: +44(0)207-592-6677

SOURCE John Lewis Insurance