‘Compensation culture’ costing motorists - Car insurance - News - Moneyfacts


‘Compensation culture’ costing motorists

‘Compensation culture’ costing motorists

Category: Car insurance

Updated: 14/02/2013
First Published: 13/02/2013

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Research by the insurance provider Aviva has found personal injury claims for whiplash, under the so-called 'compensation culture', are costing motorists at least £118 extra on their yearly car insurance premiums.

The survey of over 2,000 drivers revealed that 63% believe many claims are sought as a means to gain money to spend on themselves, rather than actual rehabilitation costs, with just 33% of people spending compensation payouts on medical treatment.

A massive 94% of motorists blamed third parties for higher car insurance premiums, which have risen by 80% since October 2008.

Aviva stated that it will be looking to improve the motor insurance personal injury claims system in a bid to reduce costs.

Dominic Clayden, claims director at Aviva, said: "We are campaigning for a more efficient system that removes the 'interested parties' and requires people to deal directly with the insurer of the at-fault party."

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