Motor Insurers Investigated Further for Car Accident Claims Law Change

The United Kingdom is a country which has not long been dubbed the ‘whiplash capital of Europe’ and recently car accident compensation claims have been in the news again. As British motorist’s insurance premiums are on the rise once more, the Office of Fair Trading (OFT) has decided to step in, in order to check up on the insurance company’s claims that there are now other factors in play which are resulting in higher insurance premiums. The intervention of the OFT comes not-long after UK insurance companies claims that the UK legal system, and the road traffic accident portal which solicitors here work with, is the reason for the increase.

After a full enquiry, the Office of Fair Trading stated that rising insurance premiums may be a result of the ‘not at fault’ drivers involved in car accidents and the fact that they are generally taking on inflated costs for their car repairs and hire vehicles. This was, in turn, costing the ‘at fault’ driver’s insurance company more money in order to cover the car accident claim, thus further adding to the cost of insurance for drivers as a whole in the UK.

It is claimed by insurance companies that car accidents claims and the current legal process is the predominant factor driving up the insurance premiums for UK’s motorists, but car hire was not specifically discussed prior to this recent intervention by the OFT. A spokesperson for the Credit Hire Organisation (CHO), a company which represents car hire companies, spoke out against the claims by insurance companies. The CHO spokesperson stated that the car hire represented around 2% of the insurance industry’s total spending of £13 billion per year, hardly a significant quantity.

The original decision of the OFT to investigate the private motor insurance market came as a direct result of the insurance companies claiming that it was the legal process for car accidents causing the 40% increases to premiums. However. the Transport Select Committee subsequently identified that such claims were entirely unfounded and that the rise in insurance premiums due to car accident claims and the legal process was in fact closer to 12%. As a result of this, the Transport Committee is urging the government to change the law in such a way so that claims can continue to be paid but only if there is objective evidence for both the significant effect on the claimant’s life and the injury suffered. More jostling and evidence examination is expected to take place before a final decision is made on the car accident claims law

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About My Compensation

I am a director for personal claims specialist, My Compensation. I write for a number of legal blogs and publications in the UK and the US.
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4 Responses to Motor Insurers Investigated Further for Car Accident Claims Law Change

  1. site says:

    Ola! My,
    Very interesting, Short term motor insurance is required for only short periods of time. Have you ever been in a situation where you only needed a car insurance policy for less than a few months, sometimes even just a few days? That’s what this kind of policy is for. For one day, a few days, a week, to a few months, the insurance has you covered. There are many reasons something only short term would be required.
    Keep up the posts!

  2. Hi My,
    This question may be a little off-topic, From motor insurance Gravesend to other cities, provinces, states and other countries, there always a list of automobile insurance companies that can help you find the cheapest car insurance.
    Good Job!

  3. First off I want to say awesome blog! I had a quick question which I’d like to ask if you don’t mind. I was interested to know how you center yourself and clear your thoughts prior to writing. I have had a tough time clearing my thoughts in getting my ideas out. I do take pleasure in writing however it just seems like the first 10 to 15 minutes are generally wasted just trying to figure out how to begin. Any suggestions or tips? Cheers!

  4. i read urea story ure insurance suggestions is very good i agree with u.plz always share this kind of information

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