The new government reforms on whiplash claims will reportedly save motorists across England and Wales over £1bn as insurers pledge to pass on the savings to drivers.
The changes were designed to reduce the number of whiplash claims made each year, with more than 550,000 in 2019/20 alone and allow insurers to cut premiums for millions of drivers.
The reforms also include a new user-friendly online portal for road traffic accident claims under £5,000 which aims to simplify the process and remove the need for expensive lawyers.
Furthermore, it also introduces a ban on settling whiplash cases without medical evidence, a practice which has previously opened the door to “fraudulent or embellished claims”.
Road traffic accident claims in the UK are more than 40% higher than in 2006 and have been fuelled by a reported increase in “exaggerated and often disproportionate claims”, driving up the costs of premiums for ordinary motorists.
Dominic Clayden, chief executive of Motor Insurers’ Bureau, said: “We are pleased to have delivered on our remit to build a service that meets the requirements of these important policy changes.
“MIB’s focus has always been about making sure the new legal process is as easy and straightforward as possible for anyone who might need to make a claim. To make sure the service works well for everyone we will continue our work with the Ministry of Justice to listen to feedback and to make further enhancements.”
Steve Gooding, director of the RAC foundation, added: “There are almost as many lurid headlines about whiplash claims as there are claims themselves.
“This new system should mean legitimate cases are easier and quicker to deal with, fraudulent claims are more likely to fail and all drivers benefit from decreases in their insurance premiums.”