Whiplash Claim Capital of Europe!
Jul 30, 2013
I’d like to say I’ve had a lovely relaxing weekend but in truth it’s been a bit rubbish. I shouldn’t moan really as I am preparing for the next phase of ‘living the dream’; my move to Cornwall, but the reality at present is far from ‘dreamy’! It’s packing, cleaning, removing curtain poles, sorting the garage out (I found things in there I never even knew I had!).
The house looks like a bomb has hit it; I keep needing to use the things I have packed and the dog is so stressed he follows me everywhere like a lost sheep (I will refrain from making a joke about having ‘Shepherd’ as a surname!).
A high point over the last few days was reading that the cost of car insurance has dropped by a record 9.8% in the last year, the biggest drop since the AA insurance index began in 1994. Apparently car insurance is still twice as expensive as it was in 2007 but it is such a refreshing change to hear costs working in our favour.
The reduction in costs is mainly attributed to the industry’s clamp down on fraud and restrictions on claims management companies. Quite simply recent changes, which include a ban on referral fees paid by Lawyers and claims management companies to insurers in return for accident victim details and the introduction of conditional fees for people suing with the help of ‘no win no fee’ lawyers, means that it is now more expensive to claim. More expensive claims equals fewer claims. Fewer claims equals happy insurance companies. Happy insurance companies equals happy consumers.
It’s sad that our so called compensation culture with our title of ‘whiplash claim capital of Europe’ has had such a dire effect on the industry and ultimately on the poor innocents like you and I who have had to pay the price.
I was also really pleased to hear that the Financial Conduct Authority (FCA) who regulates the financial services industry has launched an investigation into firms who overcharge existing customers for automatic renewals. Having nearly been stung myself a few weeks ago, the FCA have my full support but in the meantime, just make sure you shop around and compare car insurance quotes, or any other insurance cover for that matter before renewing your cover. It can save you a lot and I mean a lot of money!
By Ashley Shepherd