Queen’s Speech: money off insurance?
The Government’s crackdown on fraudulent whiplash claims could cut car insurance costs.
In the Queen’s Speech on 21 June, it was announced that a new Civil Liability Bill is expected to bring insurance premiums down by around £35 a year by banning offers to settle claims without the support of medical evidence, as well as introducing a new fixed tariff of compensation for whiplash injuries lasting up to two years. This follows on from consultations last year aimed at reducing bogus whiplash claims.
The speech says: ‘Legislation will be introduced to modernise the courts systems and to help reduce motor insurance premiums.’
However, classic insurance companies say that it’s too early to jump to conclusions regarding savings. Liam Lloyd from Footman James says: ‘While the industry has announced these changes we are currently liaising with our insurer partners to establish how we operationalise, although we do not envisage any major changes to our existing policy’.