July 28, 2017

False whiplash claims affecting car insurance policy premiums


With over 600,000 whiplash claims made a year, costing insurance companies a total of £2 billion a year, it is no wonder than insurance policy premiums have risen by 40% since 2006, despite road accidents actually decreasing by 20%. False whiplash claims are seen by many as quick and easy way of making money.

As there is no way of actually diagnosing whiplash, some people take it as an opportunity to make some money by faking a case of whiplash.

With 203,950 road casualties being reported to the police, 600,000 seems an extreme number for people suffering whiplash in road accidents.

Due to the lack of independent witnesses in most cases of whiplash, insurance companies often have no option but to declare both parties liable and pay out on a whiplash claim.

The cost of taking each of the six hundred thousand claims to court could bankrupt many insurance companies, who find it easier and cheaper to settle outside of court in whiplash cases. However it is the average Joe that will suffer.

To circumvent the £2billion pay-out, insurance companies have opted to raise their premiums, with the average Briton paying £1,000 a month for their insurance, a huge increase from the £350 of 1994.

As a country we are paying roughly £10 billion a year in insurance, a fifth of which is being spent on whiplash claims.

Despite car accidents, car related crime and car prices all falling in recent years, care insurance has continued to rise, and many blame the false medical claims, such as whiplash, that see insurance companies losing billions every year.

With many older drivers paying more for their insurance than the worth of their car, many have begun to question the governments ‘pick and choose’ attitude towards car-insurance.

The Government makes it a legal requirement for all car drivers to be insured if their car is on the road, however it puts no legislation into place to cap insurance policy premiums, giving insurance companies free reign to charge extortionate prices to the cash strapped public, despite the economic downturn in recent years.

On the other hand, the government also says they are doing all they can to bring down fraudulent claims, and are looking into news ways to stop fake whiplash claims, which add £90 a year to car-insurance bills a year.

New possibilities include independent medical panels, and greater research into testing for whiplash. Some doctors can make up to £195 processing whiplash claims, and so independent medical panels would stop doctors cashing in on false claims.

Hidden tips to keep your business insurance low


As a small business owner, keeping your business insurance within budget is always going to be important to your bottom line. Insurance is always about having the right level of cover, and reducing your cover below what is reasonable is never advised while overvaluing the value of what you’re insuring means you’ll pay too much.

There are other ways for you to get a comprehensive insurance policy at an affordable price without having to compromise.

Risk

Insurance is calculated on risk – both the risk of a claim being made and the risk of that claim being costly. Showing insurers that your company is taking positive steps to reduce risk can help lower your insurance premium. This could be from increasing fire or hazard detection systems or increasing security. There are many guidelines that you can access to help you asses how you can keep premiums down, so making the most of these are advised.

What you need

When buying business insurance, getting the right cover is essential to an affordable insurance premium. Avoid pre-packaged policies as they won’t be tailored to your business’s needs. You could be paying for cover that your company doesn’t need, which will in turn increase the price of your business insurance quotes.

Consider using a specialist broker who can help you analyse what insurance you need so they can find the right package. Do some research within your sector to see what other companies are typically insuring themselves against.

Shop around

As a business owner, it can be all too easy to stay with your current insurer or take out a policy with the first insurer you meet. While this gives you time to focus on your business, you’re overlooking serious saving opportunities. There are many comparison websites which enable you to compare insurance policies at the click of the button, and you will be surprised at how much you could stand to save.

When shopping around for the best insurance quotes, make sure that you have a clear idea of what cover you need and that you’re comparing policies on a like for like basis. You could end up with less cover than needed by going for the cheapest option, so always read the small print.

Group rates

If you’re after cheaper insurance rate, joining a business association could prove a good way of keeping down your insurance premiums as they have access to better rates. Joining these associations can cost money, so be sure to weigh up the potential gains before joining. On the whole, joining business associations is a good idea when you consider the additional perks of being associated with a reputable association and the access to up-to-date industry thinking that many bodies offer.

London motorcyclists advice guide


Perhaps you’ve just moved to London and brought your motorcycle along with you or you’re fed up commuting into work every day so have just bought something a bit nippier to dodge through the traffic. Here’s an advice guide for those of you thinking of taking to the roads on your motorcycle.

Motorcyclist issues

Safety, security and parking are three of the most important issues faced by motorcyclists in London. Motorcyclists are extremely vulnerable on the road, and are 40 times more likely to be killed in an accident. Despite representing only 1% of traffic, motorcyclists account for roughly 20% of all serious injuries on the road. It’s therefore of the utmost importance that you’re careful on the roads and have a comprehensive insurance policy. If you happen to be involved in an accident that wasn’t your fault, it’s always recommended that you seek out advice from professional, specialist solicitors such as www.injurylawyers4u.co.uk.

With available parking for up to 4,500 motorcycles at any one time and almost 20,000 riders entering the city on a daily basis there’s a huge shortage in parking space. Because of such limited available parking, according to the BBC, a parking ticket is issued almost every five seconds in the capital.

Online interactive maps

To avoid being fined, it’s a good idea to have access to an up-to-date interactive online map that you can access via your smartphone. Such maps will help you to locate not only parking bays, but, amenities and helpful public services such as police stations and post offices.

Parking regulations

Motorcyclists have the option to park in a metered parking bay, which allows for more structured parking as each of the bays are sub-divided.

There’s also the more standard Pay and Display form of parking, where motorists pay in advance for the time they’ll require the parking permit to last, and simply display the ticket on their vehicle. The major problem with this type of payment is that tickets on display can be removed or stolen by other motorists (unlike cars where a ticket can be displayed inside the vehicle and clearly viewed through the windscreen).

If you have little choice but to park in a Pay and Display parking bay and are concerned about someone stealing your ticket, then write your registration number and bike model on the back of the ticket, as this should prevent anyone from attempting to remove it. Also, remember to carry some change with you as most of the Pay and Display machines in London don’t give any change.

Avoiding theft

Security is a very big issue for motorcyclists in London. South West London is the area worst affected, where motorbikes are five times as likely be stolen than anywhere else in the country.

Avoid theft by investing in an immobiliser and have a reputable alarm system fitted, which will act as a good deterrent to thieves.

Have your motorbike data-tagged and let potential thieves know that you’ve done so with warning stickers. This is highly effective because it will prevent thieves from dismantling the bike and being able to sell its parts, or even the whole bike itself.

Keep your bike parked in a locked area. If this is not possible, then consider leaving it locked up in a well-lit area.

To combat both security and safety issues ensure that you’re sufficiently insured with an appropriate level of cover in the event of any theft or motor bike accident.