Shock new rise in car insurance prices
The research also shows a 13% increase in car insurance prices over the whole of last year. At the end of 2014, the typical annual premium was just £594: it’s now £78 higher. This is despite a 30% fall in the number of whiplash claims! This has led to increased demand for a Government investigation into insurance company profits, which have increased dramatically.
Car Insurance Companies Making Record Profits –average £220 per policy
Low claims costs are fuelling big profits and staggering dividend payments – Direct Line and Admiral have paid out £1.65 billion in dividends in the last three years (equivalent to £221 per policy holder), driving their share prices to record highs.
At the same time, Accident compensation is at a record low – annual car insurance claims pay-outs have fallen 29% since 2010 and are now at their lowest level for nine years. “Government figures show whiplash claims have fallen by more than a third in the past four years. Yet still insurance premiums have increased,” argues Association of Personal Injury Lawyers president Jonathan Wheeler
Chancellor Osborne raises small claims limit to £5k and scraps whiplash compensation.
The Conservative Party, heavily funded by insurance companies’ contributions, have plans to ban whiplash payments, & force most claimants to either fight cases themselves or pay any legal fees from their winnings. This is despite the government opted not to increase from £1,000 to £5,000 in 2013 after being warned against the move by a report by their own transport select committee.
Insurance Companies are the main source of injury claim recommendations!
According to the largest insurers, Aviva, in their “Road to reform” which forms the government’s policy in this area, the insurers themselves are responsible for encouraging most injury claims;
Solicitors encourage 11% of drivers, who made a claim to claim,
Accident Management Companies 8%
The insurers themselves were responsible for encouraging 23%!