UK Ministry of Justice puts an end to compensation for minor whiplash injuries
The United Kingdom government is working to combat auto insurance fraud and the Ministry of Justice is putting an end to compensation for minor whiplash injuries caused by car accidents. Instead of receiving compensation from their auto insurance providers, their rehabilitation will be paid for, which the government expected will save consumers an estimated $1 billion a year in insurance costs. Moreover, cutting down of fraudulent claims may lead to a decrease in auto insurance premiums.
Changes from the Ministry of Justice may help make auto insurance coverage less expensive
The UK government believes that banning compensation for minor whiplash injuries could cut more than $50 off of auto insurance bills. The country’s insurers have promised to pass savings onto consumers, who may benefit most from the reforms. The Ministry of Justice believes that the changes will cut down on the number of fraudulent auto insurance claims that insurers receive. These companies have been fighting fraud for some time, noting that fraudulent claims have lead to higher insurance premiums.
UK handles more than $2 billion in whiplash claims every years
Aviva, the largest insurance provider in the UK, has praised the changes coming from the Ministry of Justice. The insurer has also noted that honest consumers have had to pay the price for the activities of fraudsters. This has come in the form of higher insurance premiums. In the UK, whiplash claims have cost the country more than $2 billion every years, with drivers paying more than $1 billion more than they need to because of auto insurance fraud.
Insurance industry continues to combat fraud in the UK for the sake of consumers and their financial success
Auto insurance fraud has been a problem for the United Kingdom for several years. Fraudulent claims have placed insurers under significant financial pressure, which has lead to severe losses in some cases. In order to recover from these losses, insurers have had to raise premiums and petition the UK government to take more aggressive action when it comes to fighting insurance fraud.