Jack Straw and the Battle to Control Insurance Premiums
Following the defeat of Jack Straw’s private members' bill on motor insurance regulation, a follow up report by the Transport Select Committee has reignited the debate around rocketing car insurance premiums.
The committee talked of ‘market dysfunction’ and highlighted the ‘escalation of uncontested whiplash claims’. Figures show that personal injury claims relating to car insurance had now risen to 790,999 despite there being fewer casualties from car insurance accidents. This data points to fraudulent whiplash claims which pushes up the price of car insurance for all motorists. Latest estimates suggest whiplash claims cost approximately £2 billion per annum.
The government has recently formed a committee focussed on reducing the cost of car insurance and is being encouraged to publish the plan on how it intends to achieve its goal of making car insurance more affordable for all.