The cost of car insurance has been increasing recently and providers of car insurance are complaining that insurance fraud and whiplash claims are compelling them to make motor cover more costly. It is increasingly important that we distinguish between fraud and legitimate claims.
The Automobile Association (AA) has claimed that it is struggling to make a profit through its insurance arm. For example, Simon Douglas, Director of AA Insurance, told The Times that British drivers were more likely to make whiplash claims than in the past. Mr Douglas stated:
“This is encouraged by personal injury claims lawyers, whose marketing urges people to make claims and whose costs, as well as compensation for the claim, are met by the third party insurer.”
He added that insurance fraud was on the rise and that this meant that the cost of car insurance had to increase substantially. Very few people would condone insurance fraud, but to criticise people who seek to make compensation claims for whiplash is completely over the top.
Whiplash is a condition which can be very painful, affecting the back and neck badly. However, it has also been scientifically linked with incidences of depression. If you have suffered whiplash through no fault of your own you should make a claim for compensation. This is because you may have endured severe pain and your personal injury may have made you miss work.
The average motor insurance premium across the industry has been increasing substantially in recent times, but despite protestations that the sector has been competitive, the explanations offered by the AA may be partial at best.
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