MP Report On Rising Car Insurance Costs

MP Report On Rising Car Insurance Costs

A recent report from the Members of Parliament has stated that the main cause in rising car insurance premiums is the increasing numbers of whiplash claims. snjauto

In accordance with this report, the House of Commons Transport Committee has stated that the rightful action against this would be to raise the bar for those who would like to make a claim on basis of whiplash. Payment must not be released to those making a claim unless they can rightfully prove that they have indeed been inconvenienced financially and physically.

Due to this report, the MP’s are further asking the car insurance industry to stop continuing old practices in regards with compensation claims. Five Ways to Cut Auto Insurance Costs this Summer [[ Car Insurance Tips ]]

Last year, Blackburn MP revealed the practices going on in the car insurance field when it comes to compensation claims. It has been found out that car insurance companies actually accepted referral fees from personal injury lawyers in exchange for customer details. Upon the exchange of details, the car accident victim then gets contacted by the lawyer who forces the victim into making a legal action.
In lieu with this, the Transport Committee proposed a suggestion to the government. According to the committee, it would be much better if the government would establish a cross-department committee that will focus on the task of reducing car insurance premiums.

On the other hand, a car insurance expert has stated that whiplash claims are the most    subjective and that this is what makes the claim a problem to challenge. [[ Car Insurance Guide Tips ]] How to Get Cheap Car Insurance | How to Get Affordable Car Insurance

According to Louise Ellman of the Transport Committee, “We most strongly support people in their search for justice but most drivers should not be railroaded into taking legal action and making a claim”.

“In addition to this, the car insurance industry should stop irresponsible practices that force their own hand into raising car insurance premiums for motorists. Giving out customer details in exchange for measly referral fees must be put to a complete stop.” Why Insurance Companies Raise Premiums

According to the MP report, the main reason for rising insurance premiums was the rise in numbers for personal injury claims, most of which were Whiplash claims.

“We highly recommend to the government to raise the threshold in regard with qualification for approval when it comes to whiplash claims. If the number of whiplash claims does not reduce significantly, car insurance premiums could just keep on rising. Therefore, there must be strong evidence for the primary legislation to actually consider releasing a claim.” Lowest Car Insurance Rates | Information on Purchasing Auto Insurance