The Whiplash Reform Programme made changes to the claims process for low value road traffic accident (RTA) related personal injury claims, the majority of which are ‘whiplash claims’. The reforms apply to claims arising from an RTA valued at less that £5,000.
These changes mean you will have the opportunity to settle these small claims online without the need to go to court or for legal representation.
The Government stated at the time of its introduction that it would help motorists save £35 a year on car insurance.
Ministry of Justice (MOJ) data has supported these claims, as they saw a 37% drop in whiplash claims in 2022.
However, according to the latest data from ABI, the total successful claims was the highest quarterly pay out since the organisation started collecting data in 2013.
In the first three months of the year, insurers paid out on motor insurance claims including those involving theft, vehicle repairs, replacement vehicles, and personal injury.
This was an 11% growth on the previous quarter, and a rise of 14% on Q1 2022.
For of claims settled, at 599,000, was also up 14% on the same quarter 2022.
When analysing the data, the costs of vehicle repairs grew by 33% over the last 12 months. Also, the cost of providing replacement vehicles while vehicles are being repaired increased 29% over the same time period.
In total, the pay outs for vehicle theft increased by 29% when compared to Q1 2022 – totalling £152 million. Finally, insurers paid out £642 million in personal injury claims in the first quarter of 2023.
This is a growth of 2% on the previous quarter, although in the year ending Q1 2023, payments fell by 11%.