Plans to Cut Car Costs Targets Whiplash Insurance Claims

A series of measures aimed at reducing motoring costs, including insurance premiums, have been unveiled by the Government.

Government officials have vowed to clampdown on the ‘compensation culture’ particularly on claims for whiplash injuries.

Proposals have also been put forward to pilot fuel price comparison signs on principal road networks across Britain and freeze the cost of the MoT test.

The Government plans to cap the maximum price for a MoT test at £54.85 until 2015.

One of the primary complaints from drivers about the cost of motoring relates to inflated fuel prices on Britain’s major roads.

In some locations the cost of petrol and diesel can be as much as 10p more at motorway service stations.

In a bid to combat inflated costs the Government wants to introduce a series of price comparison signs highlighting the price of fuel across all petrol stations along any given route.

Ministers have also pledged to save motorists money by cracking down on what is dubbed the ‘compensation culture’.

As part of plans to stamp out ‘exaggerated’ or fraudulent insurance claims the Government plans to introduce independent medical panels. Present legislation allows insurers to make an offer of compensation in the absence of a medical report.

In a statement from Justice Secretary, Chris Grayling, he said: “We are turning the tide on the compensation culture and helping hard-working people by tackling high insurance premiums and other motoring costs.”

He added: “It’s not right that people who cheat the insurance system get away with it while forcing up the price for everyone else – so we are now going after whiplash fraudsters and will keep on driving premiums down.”

Louise Ellman, Labour MP and Chairwoman of the Commons Transport Select Committee, speaks favourably of the proposals, especially since they target exaggerated and fraudulent whiplash claims.

She said: “The Transport Select Committee has looked at this over a long time and very recently we recommended that insurance companies shouldn’t pay out for whiplash claims without a medical report and that those medical reports should come from independent medical practitioners.”

She added: “I’m very pleased that the Government have now accepted one of our key recommendations.”

In a statement from Roads Minister, Robert Goodwill, he said: “The costs of owning and running a car are felt by millions of households and businesses across the nation. The Government is determined to help keep those costs down.”

Data published by the AA reveals that motor insurance premiums are falling at the fastest rate since 1994 – 12.3% on average across comprehensive policy insurance packages. The Government hopes to continue this trend.

Tags: Car Insurance, Driving Insurance, Young Person Insurance

This entry was posted on Tuesday, December 3rd, 2013 at 11:06 am and is filed under Book Theory Test Today News, Driving Insurance. You can follow any comments to this entry through the RSS 2.0 feed. You can leave a comment, or trackback from your own site.