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News | Wed 25th Nov, 2015
The Chancellor said “We’re going to bring forward reforms to the compensation culture around minor motor accident injuries. This will remove over £1bn from the cost of providing motor insurance. We expect the industry to pass on this saving, so motorists see an average saving of £40-50 per year off their insurance bills.”
To make it harder for people to claim compensation for exaggerated or fraudulent whiplash claims, the government is ending the right to cash compensation.
More injuries will also be able to go to the small claims court as the upper limit for these claims will be increased from £1,000 to £5,000.
This means that annual insurance costs for drivers could fall by between £40 to £50 a year.
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