Car Insurers are not passing road accident compensation savings onto their customers
It is estimated that following the Jackson Reforms to road accident compensation claims, insurers could have saved around £2.85 billion in claim costs over the last two years.
People should feel confident that they are paying a fair price for their premiums, whilst still being protected should an accident happen.
It is estimated that following the Jackson Reforms to road accident compensation claims, insurers could have saved around £2.85 billion in claim costs over the last two years. However, these savings are not proportionally being passed down to motor premiums.
Craig Budsworth, the Chairman of the Motor Accident Solicitors Society (MASS) commented that motor premiums should be significantly decreased in light of these potential savings. The AA released figures showing that following the reforms, the insurance industry have passed on a 17% saving to motorists on their premiums.
However, Budsworth believes there’s room for premiums to come down by a further 13%. Looking at the savings made across several areas including the reduced number of road accident compensation claims logged in the claims portal in 2013-14 compared to 2012-13 and the amount saved on success fees and after the event insurance premiums; insurance premiums should have reduced by 30%.
Taking into account these things, Budsworth estimated that in 2012-13, insurers would have paid out around £1.5 billion in costs, whereas in 2013-14 this would be decreased to around £387 million, “You could say that in the last two years insurers will have saved at least £2.85 billion in claims. 2011 figures, the last easily available from through the ABI, show claim spend at £9.3 billion. So if my maths right, this means premiums should be down by over 30%”.
Even though recent reforms have introduced much lower legal fees in road accident compensation claims, the insurance industry is also trying to push through reforms which will remove compensation completely for whiplash claims. If these reforms go ahead, not only will insurance companies continue to reap bigger and bigger profits, but injured people will not have access to the legal justice they deserve.
At Freeclaim Solicitors, we believe it is important that any savings made by insurance companies from the recent reforms in legal fees should be passed on to their customers. Emma Greenhalgh, Head of the Road Traffic Department at Freeclaim Solicitors commented, “People should feel confident that they are paying a fair price for their premiums, whilst still being protected should an accident happen. Insurance companies should be reducing premiums further in light of the profits made from these reforms. However, any further reforms will have a detrimental effect on those legitimately injured in a road traffic accident and may stop them claiming the compensation they deserve.”
Freeclaim Solicitors are specialist road accident compensation solicitors. We have over 25 years’ experience getting access to justice for clients who have been injured in an accident on our roads. Whether that’s in a car, as a pedestrian, a cyclist or a passenger, Freeclaim Solicitors could help you get the compensation you deserve. If you have been involved in an accident, call our helpline on 0800 612 7340 to speak to someone today, or visit our website http://www.freeclaim.co.uk
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