Government reforms set to slash the cost of car insurance
13th January, 2016

Following the Chancellor’s Autumn Statement announcement that the government would introduce measures to reform whiplash claims, the insurance industry has promised to pass on savings to consumers.

The government intends to introduce measures to end the right to cash compensation for minor whiplash injuries, and will consult on the details in the coming months. The initiative should remove over £1 billion from the cost of providing motor insurance and the insurance industry has committed to passing the average saving of £40 to £50 per motor insurance policy on to consumers.

The BVRLA (the trade body for vehicle rental and leasing sector) welcomed the announcement as it has long been campaigning for a threshold on personal injury claims which it believes would reduce the cost of insurance for rental companies.