Prime Minister David Cameron has met with insurance groups to discuss measures that can be taken to tackle insurance premiums.
Proposals discussed at the summit include a crackdown on whiplash claims, a requirement for road accident victims to supply medical evidence to back up compensation claims, fee cuts and newly qualified drivers.
At the forefront of the meeting was the subject of young drivers and how they could be banned from getting behind the wheel unless supervised by someone aged 25 and over. The new measure is part of a plan to tackle rising car insurance premiums for newly qualified drivers.
Younger drivers are being faced with high premiums due to different rating factors; the average cost for a male is £2,977 and £1,682 for females.
The Department for Transport are considering introducing a probation period for young drivers who have passed their test. It is suggested newly qualified drivers are at a higher risk of an accident, therefore having an experienced over 25 driver with them would lower the risk which will then potentially lower their premium.
It is hoped the proposed new measures will bring the cost of insurance premiums down for young drivers.
Also discussed was the ongoing whip lash claim debate that is happening around the UK. The Common Transport Committee reached out to ministers at the end of last year to change the law to make it harder for people to make uncontested claims for whiplash injuries.
Around 600,000 whiplash claims are reported each year which could potentially add £90 to an average car insurance policy with £2 billion paid out last year.
With so many claims being made each year it is causing motorists who don’t claim to have an increased premium as prices continue to rise within the insurance industry.
Prime Minister David Cameron spoke about tackling whiplash claims saying: “I am determined to tackle this damaging compensation culture which has been pushing up premiums.
“I want to stop trivial claims, free up businesses from the stranglehold of health and safety red tape and look at ways we can bring costs down.”
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By Amanda Bainbridge