For car owners who’ve been putting off purchasing additional motor insurance, this year could be the year to buy, and buy inexpensive. As late as 2013, insurance providers were plagued by fraudulent claims resulting from whiplash injuries. But since then, several investigations have been conducted to discover fraudsters, making it more difficult for making false claims on car similar injuries. This has indirectly resulted in a depression of car premiums, as less money is invested on fraud claims, insurance companies can now afford to lower premiums up to 14% compared to 2013 prices. Some pundits ascribe this fall in motor insurance premiums to competitive pricing between insurance providers. Unprecedented low premiums are accessible despite increasing cost in accidental injuries claims and a bump within reinsurance cost. This unusual dip in premiums should be seen as an small window of opportunity for car owners to acquire cheap. Industry experts predict that industry forces will soon raise motor insurance premiums to more normal levels inside of months.
Fraudulent whiplash injury claims happen to be a big problem in the united kingdom, earning the country the concept of whiplash capital in 2011. The Association of British Insurers had dubbed the british isles as the “whiplash capital connected with Europe” in 2011 when there ended up 141 successful claims of whiplash injury as a result of car accidents in that 12 months alone. Fraudulent claims support an entirely industry of lawyers, ambulance chasers, and management firms creating an income off cash for crash accidents everywhere in the UK. Many of these fraudsters would then don a show of exaggerated injuries with the courts to win injury claims. These fraudulent claims win the courtroom awards for victims of auto injuries, that are ultimately taken care of by car insurance clients.
At one point it turned out estimated that the courts would likely receive some 1, 200 whiplash claims within a single day. This is a preposterous amount considering that the volume of car accident injuries far realized those of workplace injuries. The problem with whiplash is that it is the kind of injury which is difficult to diagnose, but all to easy to fake as the injury’s primary symptom is pain. This makes whiplash a preferred of fraudsters who drain NHS resources with treatments they cannot need except for show within court. The payout towards injury claims are then passed on to the end consumer who pay for premiums. Since the crackdown on false claims, insurance companies can now pay for to divert their funds faraway from supporting and fighting off sham, which is good news for motor insurance buyers.