Whiplash Cash Compensation Could be Banned

Car insurance bills could fall by as much as £50 if the government's plan to ban cash payouts for whiplash claims goes ahead.

As announced in the autumn statement, George Osborne has said the government will consult on ending the right to claim cash compensation for minor whiplash injuries. Whiplash compensation is costing the insurance industry approximately £2 billion a year, which works out at roughly £90 per policy.

The Treasury has said:

"This will end the cycle in which responsible motorists pay higher premiums to cover false claims by others.

"It will remove over £1 billion from the cost of providing motor insurance and the government expects the insurance industry to pass an average saving of £40-£50 per motor insurance policy on to consumers."

If plans do go ahead, a cut of £50 would be equal to a 13 per cent cost cut to the average motor insurance premium in 2014 of £372.

If you want to make a claim after suffering a whiplash injury, contact our whiplash solicitors on 0800 811 844 for advice.

Mellor Hargreaves Ltd

Whiplash Solicitors