Thursday, 12 January 2012

What are the MPs ranting about?

MPs have urged the government to put a committee together to look at how they can reduce the cost of motor insurance.* This could be great news for young drivers looking for affordable car insurance.

It's believed that a large part of this issue is the increasing number of whiplash claims - which now make up 70% of all personal injury claims.

The Chair of the Transport Committee, Louise Ellman commented that "many of these claims are for whiplash, an injury where diagnosis is often subjective and therefore very costly for insurers to challenge."

As a result of this MPs are calling for the "threshold for receiving compensation in whiplash cases" to be raised. If the number of whiplash claims does not drop dramatically then they believe that the government needs to bring forward legislation to require objective evidence - of whiplash and of it having a significant impact on the claimant's life before any compensation is paid.

Following up on this Nick Starling of the Association of British Insurers (ABI) commented on the "compensation culture" that's developed:

"Our customers are fed up of getting text messages, fed up of the compensation culture and have had enough of paying higher car insurance premiums to line the pockets of ambulance chasing lawyers and claims management companies."

Curiously enough having a telematics car insurance device, such as iKube installed could help with evidence gathering for car accidents as it can measure a number of factors, including:
  • Speed
  • Braking
  • How the car handles corners
  • Where the car was at the time of the incident
Could this be reason enough for the Government and insurers to embrace the new black box insurance technology?

Whether you’re considering young, learner or older drivers – some form of black box car insurance could be ideal, especially if companies want to reduce claims and control the rising price of car insurance for young drivers and older drivers alike.

*Source: BBC - MPs demand action on spiralling whiplash claims