Drivers to save £1bn on annual insurance
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DRIVERS can help cut insurance premiums by £1billion a year from today – by settling their own whiplash claims.
A new online portal is available for road traffic-related personal injury claims under £5,000.
It means motorists in England and Wales can receive payments for accidents without the use of a lawyer, sparing legal costs.
There is also a ban on settling whiplash cases without medical evidence, a practice which has opened the door to fraudulent or exaggerated claims.
The Ministry of Justice said the Official Injury Claims portal could cut £35 off premiums, with the total saving for insurers set to be about £1.2bn.
Abuse
It said the changes were designed to cut the “unacceptably high” number of whiplash claims each year, with more than 550,000 in 2019/20 alone.
Lord Chancellor Robert Buckland said: “For too long the system for making whiplash claims has been open to abuse by individuals looking for an easy payday, with ordinary motorists paying the price.
“Our changes will put an end to this greedy opportunism and ultimately see savings put back into the pockets of the country’s drivers.”
Steve Gooding, of the RAC Foundation, said: “This should mean legitimate cases are easier and quicker to deal with, fraudulent claims are more likely to fail and drivers benefit from decreases in insurance premiums.”
And Dave Lovely, of Aviva, said: “These reforms are critical in creating a fairer system that balances care and compensation for genuine injuries caused by motor accidents, while removing excess costs.”
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