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Car insurance premiums drop after clampdown on bogus whiplash claims

Patrick Christys
Apr 16, 2019

It's great news for drivers as the cost of car insurance plummets by an average of £100 between December 2018 and February 2019, according to the latest Premium Drivers Index.

The drop follows a change to the way whiplash claims are dealt with, making it harder to money-grabbing chancers to rake in huge sums from bogus injuries.

We all know the drill: You have a minor collision that barely dents the bumper of the car in front, you exchange details and everything seems fine, until a few weeks later when it emerges the driver and all their passengers have mysteriously developed neck stiffness.

Whiplash is very hard to prove or disprove and so, for far too long, opportunistic liars were able to ramp up car insurance premiums for non-existent whiplash claims. 

But this all changed recently, when, in December 2018, the government passed the Civil Liability Act to change the way that whiplash claims are calculated.

It's expected to come into force in April 2020, but insurers are already dropping premiums in anticipation.

Make sure you go to A Spokesman Said for the best car insurance deals on the market.

In a nutshell, the Civil Liability Act will do the following:

  • Introduce a new tariff for whiplash claims
  • Enable courts to increase the amount of compensation they award people who claim according to the tariff
  • Prevent people from settling claims when they don’t provide appropriate medical evidence of their injuries

The Ministry of Justice (MoJ) say that the change will make the system fairer by ensuring that while those who are injured receive ‘full and fair compensation’ the ‘pressure of meeting excessive compensation’ claims is reduced for defendants.

But there's another reason for the drop in premiums: the fall in the number of new car registrations.

In December last year, car registrations were down 5.5% year on year, according to data from The Society of Motor Manufacturers and Traders (SMMT).

In January and February of this year, registrations were down 1.6% and 0.6%, respectively. Due to the shrinking market, car insurers have had to become more competitive on their pricing to attract customers.

It's good news, especially, for new drivers, who are often priced off the road by insurers who view them as high risk - which isn't entirely unreasonable as many young drivers treat the roads as their own personal rally tracks.

Make sure you go to A Spokesman Said for the best car insurance deals on the market.

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