Are insurers punishing blameless drivers?

This article was published on: 08/25/16

Recent research has unearthed shocking news that despite insurers pledging to pass savings on to consumers. following the government’s proposal to increase the small claims injury cap, drivers are still facing increased premiums, even when no blame is assigned.


“Not at fault” increases

Consumer watchdog, “Which?”, recently carried out research which suggests faultless claims and scratches that have been declared but not claimed on by drivers, are still heavily affecting insurance renewal prices.

They conducted a study among the UK’s top insurers, including Esure, More Than, Rias and Admiral. The results showed shockingly high increases following a non fault claim, which involved the insurer paying out. The results included increases of:

  • Aviva – 25%
  • AXA – 26%
  • Rias – 29%
  • More Than – 33%
  • Esure – 39%

More shockingly, of the surveyed insurers only one company reduced the premium following a non fault claim (which incurred no cost to the insurer), with Hastings Direct offered a 2% decrease. Other insurers still raised the premium including Admiral (11%), AXA (14%), Esure (17%) and More Than (33%).

Not passing on savings

When the proposals to raise the small claim limit for free legal representation to £5,000 was announced, insurers promised drivers that 100% of the savings were to be passed on.

The potential removal of the small claims access for those suffering whiplash and minor injuries has been welcomed by the insurers. They see this as a money saving rule and have promised to act on it accordingly.. However, with these recent revelations, it is difficult to hold any optimism that they will stick to their word. Similar promises were made in light of the introduction of previous whiplash reforms and the introduction of LASPO, that have clearly not been kept.

Removal of legal aid has cut access to justice

Access to justice

Due to the regulations and the lack of evidence to support insurers passing on savings, solicitors nationwide have united in opposition to the proposals in order to retain access to justice for whiplash sufferers. With insurers not carrying through with their promise, it is evident that removing all legal cover under £5,000 is not the best way to tackle fraud and furthermore it will leave legitimate claimants in the cold.

Scott Rees & Co fully supports this action and has pledged support to giving everybody justice no matter how small the damages are. Tackling fraud in a broad manner results in punishing legitimate victims and more care must be taken in identifying fraudulent claimants at the source. The Government’s current proposal serve to be nothing more than a quick fix by punishing the majority of genuine accident victims to tackle the minority..

If you have been injured at work, in the car, on holiday or anywhere else as a result of somebody else’s negligence, call 01695 722 222 to speak to one of our advisers on what we can offer you or alternatively fill in our claim form here to get started right away.

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