The number of road accident claims made has risen by 18% in the past year, costing the insurance industry a staggering £420m a year.
This comes to quite a surprise as rising fuel prices have undoubtedly led to people using their cars less frequently, resulting in an 11% drop in road accidents in 2011.
Between 2010 and 2011, insurers saw record numbers of road accident claims being made, which has in turn cost the industry a huge amount of money (approximately £400m).
This is not only bad for insurers but also drivers, who will no doubt be faced with higher insurance premiums in the coming years as insurers try to make money back.
The actuarial profession who surveyed this data have brought to light some worrying connections, namely that there was a clear correlation between where claim management companies operate and personal claim hot spots. Data showed clearly that the majority of third party injury claims had been made in and around areas where claim management companies operate.
The numbers are so bad that some parts of the UK have higher claim rates than even the worst regions in the United States. This clearly shows that something is wrong with current legislation. The government is thus talking about regulating the way in which these companies operate, as information is currently freely passed onto them by insurers.
According to leading insurers, the questionable practice of these claim management companies has resulted in a 61% increase for your average insurance premium.
Whiplash claims have been amongst the most popular type of claim made by motorists, with the North West regions of England having the highest number of claims in the country. Major cities such as Liverpool, Manchester and Birmingham are considered to be ‘whiplash hotspots’.
The lowest claim areas are Aberdeen, Dorchester, Exeter, Kingston and Cambridge amongst others.
Scotland by and large had the lowest number of claims and that is almost entirely down to do differing legislation for claim management companies.
This clearly demonstrates that legislation needs to be altered to help keep insurance premiums down as well as close down certain loopholes that some companies are exploiting.
If you have had a road accident, using well trusted solicitors such as injury lawyers 4 u instead of an unknown third party company is advised as they have many years of experience handling personal injury claims.
Article by Georgina Graham