The government crackdown on false whiplash claims is set to save drivers £50 a year on their insurance premiums as firms vow to make cuts.
Government reforms to raise the upper limit for personal injury suits in small claims courts, from £1,000 to £5,000, promises to end the right to cash compensation for minor whiplash injuries. As a result of the clampdown on fraudulent whiplash claims, drivers are in line for a £50 insurance bonus as insurers vow to pass on savings.
James Dalton, of the Association of British Insurers, said:
"The Government reforms are a significant breakthrough in tackling the UK's compensation culture and are good news for motorists."
Labour MP Graham Stringer, who sits on the Transport Select Committee, said:
"We have done a number of inquiries into this and there is no doubt there have been scams between some lawyers, some insurance firms and some criminals that have led to higher premiums."
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