Any initiatives that could help to tackle fraudulent activity and thus help to reduce the cost of insurance for motorists is good news and will be welcomed by the industry and motorists alike.
Ipswich, UK (PRWEB UK) 14 February 2012
Driving tests are far more rigorous these days, and new statistics on road safety show that the number of people killed and seriously injured on our roads has fallen from an annual figure of 3,450 ten years ago to 1,900 in 2012*. That, along with the recent crack down on uninsured driving, which has been recently reported by car insurance comparison site Tiger.co.uk, makes it no surprise that drivers may well be questioning why prices for car insurance quotes are still so high.
Although the combination of these factors should be reducing the costs incurred by insurance companies, allowing for savings to be passed on to hard pressed motorists, there is yet another factor at play which is preventing this from happening.
According to figures from the ABI the total number of whiplash claims being made by UK drivers increased by a huge 70% between 2005 and 2009. In fact, the 2009 figure was approaching nearly 700,000 claims in one year alone.
This is thought to be a result of a proliferation in “no-win no-fee” injury claims activity from legal companies looking to profit from fees and charges. Writing in the Mail On Sunday the Transport Secretary Justine Greening commented, “From texting and cold-calling drivers involved in accidents, to running high profile advertising campaigns, lawyers are encouraging people to claim for whiplash injuries sustained in the most minor of incidents - which barely damage the car's paintwork, never mind its driver.”
She went on to announce that the government will be holding a summit to investigate all areas of the insurance industry with a focus on motor insurance. The summit will aim to address issues like fraud and seek solutions to the problem of car insurance inflation.
Andrew Goulborn, Commercial Director from car insurance comparison site Tiger.co.uk commented, “It is good that this issue is on the government agenda. Any initiatives that could help to tackle fraudulent activity and thus help to reduce the cost of insurance for motorists is good news and will be welcomed by the industry and motorists alike.”
Tiger.co.uk is a trading name of Call Connection Ltd. Tiger.co.uk is a UK based, independent motor insurance comparison site, offering insurance quotes from over 150 motor insurance brands. Call Connection Ltd is authorised and regulated by the Financial Conduct Authority (FCA number 308374).