Dear Editor,

Readers must be feeling the pinch from the rocketing price of car insurance. Behind the scenes, the car insurance industry is enjoying a significant windfall at the cost of fairness for injured motorists.

Government reforms introduced in 2021 were designed to reduce insurance premiums by £35 a year. These reforms included slashing the amount of compensation people can claim for ‘whiplash’ injuries. People don’t always realise that whiplash injuries can cause months of needless pain and disruption, because of the negligence of other drivers. As a result of the reforms, some people with whiplash now receive less compensation than they would for the inconvenience of a three-hour flight delay.

By contrast, premium prices have since risen by 83 per cent, far outstripping overall increases in costs for insurers, including for repair and theft claims, which have gone up by just 23 per cent.

Drivers are paying all this extra cash for insurance, yet compensation to help care for their needs when things go wrong - the very thing insurance is supposed to provide - has been reduced severely.

The Treasury will have to report to Parliament on the impact of the reforms and whether consumers have seen any benefits. Insurers and the Government should be held accountable for selling motorists down the river. 

Jonathan Scarsbrook

President

Association of Personal Injury Lawyers (APIL)