One of the primary concerns of many people contemplating learning how to drive is the associated costs of running a car once they have passed their test. Whilst certain costs such as petrol are unavoidable, the cost of insuring your car is something that can prove to be very expensive, especially if you are a newly qualified driver.

Please Note – The Pass Plus course can help to reduce insurance costs of newly quality drivers.

However, good news could be on the horizon in regards to insurance premiums if the following story becomes reality.

Whiplash plans to ‘cut car insurance premiums by £40’

Millions of motorists could see their car insurance premiums reduced as a result of plans to cut compensation for whiplash injuries in England and Wales.

Whiplash claims have risen by 50% over the past decade, costing insurance companies about £1bn a year.

The government said insurers have pledged to pass on the savings, worth about £40 a year.

Following a promise made last year, ministers are looking at scrapping the right to compensation or capping it.

In its consultation, the Ministry of Justice suggests that such payments – which are separate from medical bills or loss of earnings – could be banned.

Another option is capping them at a maximum of £425. By contrast the current average payout is £1,850.

‘Better deals’

The government pointed out that while the number of road accidents in the UK has been falling, the number of whiplash claims has been increasing.

“For too long some have exploited a rampant compensation culture and seen whiplash claims an easy payday, driving up costs for millions of law-abiding motorists,” said Justice Secretary Liz Truss.

“These reforms will crack down on minor, exaggerated and fraudulent claims.”

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What are your thoughts on this? Is this a good idea or just another way for insurance companies to avoid paying out on a claim?

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