Motoring group, the AA, has warned that motorists, who have enjoyed a period of dropping insurance premiums, are set to see their annual premiums rise again next year, unless the government takes more concrete action against fraudulent whiplash claims. Insurers have dropped prices following the introduction of new regulations by the government to help curb the number of whiplash claims, but the AA says that insurers are disappointed at the results, and that they will start to increase prices next year in a bid to try and combat the continued problem.
Whiplash is a soft tissue injury, but its effect on the neck and upper back, as well as the arms and legs, means that it can be debilitating. Most instances of whiplash do clear up within a few days, but some cases can take a lot longer.
Insurance companies, and several government bodies, believe that many whiplash claims are actually fraudulent. In some instances, this means that people recover from the injury a lot sooner than they say, while in other cases it means that the injury was not as bad as first reported. Insurance companies blamed escalating insurance rates on the fact that Britain is considered the whiplash capital of the world, and the government attempted to take action to help combat both problems.
New regulations and laws were introduced, that were meant to reduce whiplash claims. Lawyers and legal firms were prevented from encouraging clients to seek compensation, and much more rigorous physical and medical examinations are now required of anybody that claims to have whiplash. It was believed that this would deter those with lesser injuries, and would therefore lead to insurers dropping their average premiums for drivers. However, it would seem that the measures have not gone far enough, at least as insurance companies are concerned.
The AA has said that insurers will soon stop dropping prices, and that premium rates will level off towards the end of this year. By next year, prices will start to rise again so that drivers should expect to be start paying higher monthly insurance costs again by this time in 2015.