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

News

‘Compensation culture’ costing motorists

‘Compensation culture’ costing motorists

Category: Car insurance

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

MONEYFACTS ARCHIVE
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 It is now over 6 months old so the content may be out of date.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."

What next?

Compare car insurance quotes
Compare van insurance quotes
Compare motorbike insurance quotes

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Black Friday sees increased motor incidents

Today can be a day of big savings, but it could also end in tears, as research has revealed that motor incidents were up by 8.5% on Black Friday last year. It’s therefore extra important to keep an eye on traffic today, not just on bargains.

Whiplash crackdown could cut car insurance costs

Whiplash claims have rocketed in recent years, and they’re driving up the cost of car insurance. So it’ll come as welcome news that the Ministry of Justice is stepping in, and will hopefully reverse the trend.

Be extra cautious on the roads today

Today may be Halloween, but it’s also the first Monday after the clocks go back. According to Admiral, this traditionally sees a higher number of incidents on the road, and the insurer is urging motorists to exercise extra caution as a result.
 
Close