Insurers pledge to pass on savings

Ministers have announced that car insurance customers will see cheaper prices from a reduction in legal fees around small personal injury claims.

The pledge came after the Prime Minister vowed to bring down the £1,200 fee for lawyers working on such cases.

David Cameron's announcement came at a meeting with the insurance industry which also saw him blast the UK's "compensation culture".

Senior industry figures said thatcar insurance customers would benefit from the savings. They also pledged to conduct rigorous investigations on health and safety claims before issuing payments.

Discussions at the summit hammered out a joint bid by ministers and the industry to bring down the number of whiplash claims, with more detailed medical evidence and speed thresholds among the ideas mooted.

Otto Thoresen, director-general of the Association of British Insurers, who attended the summit, said: "Tackling these issues will bring down motor premiums. Insurers are committed to this, but we need help from the Government."

Copyright Press Association 2012