An announcement has been made today by David Gauke who is the Justice Secretary that legislation in the Civil Liability Bill may save motorists an average of £35 per annum as a result of clampdowns on whiplash claims. It has been quite some time since there has been any good news to report with regard to motor insurance premiums as over the last couple of years or so there has been a progressive rise in such premiums.
It is expected that the number of whiplash claims paid out by motor insurers will fall as the way such claims are processed is tightened up. This is to be achieved by specific amounts being set for whiplash claims plus it will no longer be possible to process through to completion a whiplash claim unless suitable medical evidence is provided. Another factor that may see a lowering of motor insurance premiums is the way that the Ogden Discount Rate is calculated for very serious personal injuries.
There will be many supporters of this legislation and let us hope that there is a fall in car insurance premiums as quickly as possible. Unfortunately, motorists have had to face not only a possible rise in how much he or she has had to pay for their car insurance but fuel prices have been quite temperamental over an extended period of time. It will be interesting to see how long it takes for this legislation to filter through to the amount being paid by motorists for their car insurance – the sooner the better.
If motorists do see a fall in the amount their insurance company is going to charge them for their motor cover they should not become complacent. People should still shop around for their cover by using the likes of a price comparison website to see if they are able to obtain the car insurance they require but at a lower cost. It should not take too long to establish if cover can be obtained cheaper from another provider especially by using the likes of the Internet.
