Rising Insurance Due To Staggering 18% Increase Cash Injury Claims
Despite an 11% fall in the total number of road accidents, the continual rising insurance costs facing driver are a result of the staggering 18% increase of road accident personal injury claims last year, a report by the Actuarial Profession showed today.
The year-on-year rise in bodily-injury claims is the highest it has ever been, with the increase adding about £400 million pounds to insurers’ costs last year. Adding further worry, there appeared to be a ‘clear correlation’ between the location of the claims management companies’ offices and the personal injury ‘hotspots’, said David Brown, Chairman of the working party which produced the report.
The majority of bodily injury claims were reported in North-West England, with this region overtaking the worst regions of the US, in terms of the proportion of accidents involving a bodily-injury claim.
Other clear geographical areas of concern were Birmingham, Liverpool and Manchester. Mr Brown said, ‘The clear correlation between claims management companies’ offices and claims ‘hotspots’ suggests the two are interlinked’.
RoadHawk reported on the measures Government are taking to tackle the ‘whiplash culture’ that Britain is facing and the rising insurance drivers are facing. The big rise in personal injury claims last year may have been ‘a last hurrah’. ‘The increase in costs to insurers because of the rise in bodily-injury claims is likely to result in a rise in motor insurance premiums for drivers’, Mr Brown said.
Last year the Government proposed a ban on referral fees – a system in which personal injury details are sold on by companies to lawyers. At present, the ban has not been passed into law and there was ‘currently no recognised definition of a referral fee’. The Actuarial Profession added that there was ‘some way to go before insurance companies stop losing money on private motor insurance policies, and so the premium increases are unlikely to be a thing of the past’.
Protect yourself against fraudulent personal injury claims and rising insurance with RoadHawk black box camera systems. Domestic drivers can also benefit from up to a 15% discount of their car insurance premium through Adrian Flux.