Accidents down but claims increase

Accidents down but claims increase

According to a report road accident personal injury claims went up a "staggering" 18% during 2011 despite a fall in the number of accidents.

The report by the Actuarial Profession also stated that drivers' insurance premiums would probably increase due to a rise in personal injury claims despite an 11% drop in road accidents. As the cost ofcar insurance is expected to rise securing a competitive deal is even more important.

The cost to insurers has increased to around £400 million, the biggest ever increase when comparing 2010 with 2011.

Chairman of the working party that produced the report David Brown said there seemed to be a "clear correlation" between the "hotspots" for claims and the locations of offices of the claims management companies.

Brown added that this could be "a last hurrah" for bodily-injury claims and new legislation is expected to be introduced.

The north-west of England was where most claims came from with Liverpool and Manchester figuring particularly highly. Birmingham also registered a significant number of claims.

Brown stated: "The increase in costs to insurers because of the rise in bodily-injury claims is likely to result in a rise in motor insurance premiums for drivers."

Copyright Press Association 2012