Car insurance news
20/08/2009
Cheaper cover deals at risk as injury claims soar
Drivers looking for the cheapest car insurance may be forced to pay more after one of the UK's leading motoring organisations revealed personal injury claims are soaring in the recession.
While latest government figures reveal accident rates on UK roads have fallen by eight per cent over the past year, the AA said larger claims are being submitted for injuries.
Increasing levels of whiplash claims and growing fraud have been highlighted as reasons for higher claims on motor cover.
An insurance spokesman at the AA said that while accident numbers were falling, motorists were apparently making more compensation claims.
He said claims were being submitted for non-serious injuries such as minor whiplash. In the past, people would simply take painkillers for a couple of days and not make claims.
The financial impact on the cheapest car insurance deals can be considerable with the cost of claims over a year costing £9.6bn. Legal expenses accounts for around 40 per cent of this total bill.
