Whiplash Claims Predicted to Increase Car Insurance Premiums

According to figures in a quarterly statement by the AA, the average cost for an annual comprehensive car insurance policy dropped by 6% in the last 12 months.

AA's quarterly statement revealed British insurance premiums have fallen by 5.8% over the past 12 months, with the average quote for an annual comprehensive car insurance policy coming in at £530.47. The roadside recovery service also added that premiums in the first quarter of 2015 fell by 1% in a suspected bid to tempt motorists with discounts.

However, claims for whiplash injury, particularly for fraudulent whiplash claims, are having a negative effect on pricing as the cost of claims exceeds the premiums of many insurers.

Janet Connor, managing director of AA Insurance, said:

"We're starting to see insurers quoting higher prices and I think that's the beginning of a trend, but the market remains very competitive.

"My greatest fear is that if insurance fraud such as whiplash injury claims isn't brought under control and quickly, we will see a repeat of the spiralling premiums of 2010 and 2011 when the cost of the average policy rose by over 40 per cent in just 12 months."

If you've suffered whiplash after a road traffic accident, contact our whiplash solicitors on 0203 206 1134 for advice.

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