Motorists across England and Wales will save up to £35 a year on their insurance as new rules on whiplash claims come into force today
The changes are designed to reduce the unacceptably high number of whiplash claims made each year, with more than 550,000 in 2019/20 alone, which will allow insurers to cut premiums for millions of drivers.
The reforms include a new user-friendly online portal for road traffic accident claims under £5,000 – simplifying the process and removing the need for expensive lawyers. They also introduce a ban on settling whiplash cases without medical evidence – a practice which has opened the door to fraudulent or embellished claims.
Insurers have pledged to pass on the savings these reforms will create to drivers – worth a total of £1.2 billion.
Despite the UK having some of the safest roads in Europe with fewer crashes reported year-on-year since 2013, road traffic accident claims are more than 40% higher than in 2006. This has been fuelled by a reported increase in exaggerated and often disproportionate claims, driving up the costs of premiums for ordinary motorists. The Government is determined to clamp down on this behaviour and help reduce the cost of insurance for drivers.
The Lord Chancellor, Robert Buckland QC MP, said:
Dominic Clayden, Chief Executive of Motor Insurers’ Bureau (MIB), who operate the new Official Injury Claim online claims portal, said:
Steve Gooding, director of the RAC Foundation, said:
Key changes that have been introduced today include:
The reforms are part of measures contained in Part 1 of the Civil Liability Act 2018.
The new online portal will revolutionise how claims are made, creating a system that is simple and more efficient to use. It has been tested by professionals in the industry and reviewed to ensure it is easy to understand - with user-guides available to explain how to make and progress a claim at every stage. For those who require additional assistance, a helpline will also be available.
Meanwhile, the increase to the small claims track limit for road traffic accident injuries will mean that claimants whose compensation is valued at less than the £5,000 can use the new portal – in most cases sparing them court appearances, fees and legal costs.
The new whiplash tariffs will give claimants clarity, predictability, and certainty about how much their claim will be worth, while ensuring costs are controlled and that compensation is proportionate to the injury suffered.
Notes to Editors