The press regularly suggests that claims for compensation as a result of whiplash are more popular than ever, and much of the advertising for car insurance companies involves the idea that compensation claims for whiplash are causing the average car owner to pay more on their premiums.
However, a recently released document suggests that this may be incorrect, as just under a third of our insurance premium costs go towards courtesy cars and the price of fixing a vehicle.
How Do Injury Claims Affect Car Insurance Premiums?
Whiplash claims have also dropped significantly since 2012 by over 50,000, which has left whiplash compensation claims about the same as they were nearly five years ago. The numbers were released by the Department for Work and Pensions Compensation Recovery Unit, showing that whiplash claims are now below the half a million mark per year.
The president of the Association for Personal Injury Lawyers has suggested that it is in fact the insurance companies themselves that are responsible for expensive premiums. The companies’ decisions regarding the fixing and replacement of vehicles along with the costs of paying the company to organise and deal with claims can be responsible for over 50% of an insurance premium.
It has been said that the Transport Committee will explore this area further, which may result in a change or at least a questioning of the current portrayal of compensation claims after an injury such as whiplash.
Injuries sustained in a road traffic collision can sometimes be dismissed as minor, but whiplash for instance can be a painful and in extreme cases debilitating condition. It is important to recognise the implications of such an injury, especially in cases where injuries can last many years and can cause a loss of earnings if treatment and recuperation time is required.
How Nelsons Can Help
If you have suffered an accident, please contact our expert Personal Injury team in Derby, Leicester and Nottingham on 0800 024 1976 or via our online form. Nelsons have an experienced personal injury department and are able to offer ‘no win, no fee’ agreements to our clients.