Backlash against 'unfair' crackdown on whiplash claims
There has been a public backlash against a crackdown on whiplash claims that came into force back in 2021.
The radical reforms "slashed compensation" for whiplash injuries and have proven to be unfair and unpopular according to a poll commissioned by the Association of Personal Injury Lawyers (APIL).
"The typical person suffering a whiplash injury receives only £750 in compensation today," says APIL chief executive Mike Benner.
"That is for up to two years of suffering, with 9 out of 10 people saying they are unable to live their normal lives and go about their day-to-day activities. That’s not justice."
According to APIL’s polling, only 5% think compensation of less than £1000 for the types of injuries affected by the 2021 reforms is fair.
"At the time of the changes passing through Parliament, insurers callously made out that whiplash was not deserving of proper compensation. The evidence begs to differ," says Benner.
What’s more, the reforms have failed to reduce the cost of motor insurance premiums, making it a “lose-lose result all round”, he adds.
Benner argues that one aim of the reforms was to disincentivise fraudulent claims, but these were always, and remain, extremely low he says.
"The reduction has instead been to the number of genuine claims from those who have been injured and should be entitled to compensation."
Instead, says Benner, if the government wants to reduce car insurance premiums for motorists, "it should look at repair and hire costs, as was always the case."
The government is currently carrying out a post-implementation review of the 2021 reforms, with more news expected in 2026.
Ask HJ
Do I have to declare an accident to my insurer even if there's no claim?
I dinged a parked car. It was my fault and I saw that I left two scratches on their rear bumper and a patch of scuff marks on my front bumper. I left a note for the owner. The wwner phoned and was adamant they wanted to go through insurance and not sort it out privately. So I reported the accident to my insurance. I did ask about claiming for my damage, which is just some scuffs on corner of the my bumper. To my surprise they said it was not economically viable to fix, so If I did claim, they would offer me (after excess) £3.5k for the car (2010 Subaru Impreza RX 2.0) or I buy the car back and I get £2.8k but car is now Cat N. I was hoping to sell the car privately for £3k.
As I have reported the accident, and as my fault, even if no claim from the other party comes through, it will still be on my profile and for any future insurance premiums I will have to declare this? So thus my risk profile and likely premium cost will be higher for next 5 years or so?
Is reporting an accident just as bad for risk profile as an actual claim taking place? My insurer didn't want to confirm these. I couldn't get a straight answer.
I would ultimately prefer to not have any marker or something I have to disclose as I know that most likely will mean the risk algorithm will make my premium sky rocket. But if it is too late for that, maybe I will just take the payout for the car, short term get a bit more cash than I was expecting and bite the bullet for higher premiums in future?
It’s important to remember that you should report any type of incident to your insurer. This applies whether you’re claiming or not. Once you have reported an incident, whether it’s considered a fault claim or not, it will be shown on your record. This is regardless of whether the other party makes a claim or any damage you claim for yourself.
This will stay on your record for the next 3 - 5 years and you will need to declare it when taking out insurance during this time. And this could have an impact on your future premiums within this timeframe.
Answered by Rhydian Jones
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