Will Car Insurance Premiums Now Fall in 2016?

Many motoring and government bodies have been cracking down on the amount of false whiplash claims made in the UK. You only have to turn on the television in the daytime to be bombarded with adverts promising you compensation if you have had an accident in the last three years etc etc. Well now it has been revealed that car insurance premiums could fall as much as £50 per year from 2016 as a result of weeding out false whiplash claims state ministers.

Leading insurers are standing by their word and promising to pass on the savings they are making on the big claims clampdown. George Osborne announced that he will curb the existing right of consumers claiming the right to cash compensation for minor whiplash. Osborne claims that by implementing this that it will remove £1bn from the cost of providing motor insurance to consumers. Drivers who do sustain serious whiplash however will still be able to claim.

According to the Association of British Insurers, whiplash claims cost a whopping £2bn a year alone! With the UK being known to wider Europe as a “compensation culture” this is big news to your average drivers.

According to confused.com, which is one of the largest price comparison websites in the UK for car insurance – they state that the average annual insurance policy stands at £629, so if these savings are passed onto the consumer you could expect to save 8% on top of that. However with this being good news with motorists this is somewhat drowned out with the news of insurance premium tax rising from 6% to 9.5% which is expected on average to add £13 to an average car insurance policy. But it is not all doom and gloom, there are still savings being passed along to motorists.