Ready to get started? Start your claim today! Make a Claim

Whiplash curbs could hand insurers £1bn-plus profit boost

The Law Society Gazette

Motor insurers would net an annual windfall exceeding £1bn from fresh curbs on the rights of injury victims – if the industry booked as profit the savings it says it will make from reform. Industry data shows that the £50 per premium saving promised by the government could yield a massive boost to insurers’ bottom lines.

In his autumn statement, chancellor George Osborne pledged to end the right to cash compensation for minor whiplash injuries and raise the upper limit for personal injury claims in the small claims track from £1,000 to £5,000.

Over Christmas the Ministry of Justice announced that leading motor insurers had promised to pass on to customers 100% of the savings they make from curbs on whiplash claims – estimated at up to £50 per motor premium.

Last week, however, both the government and trade body the Association of British Insurers admitted there will be no industry audit to confirm that insurers keep that promise. This has inevitably led to concerns that there is nothing to stop insurers simply booking the ‘savings’ as extra profit – at a time when the average motor premium is soaring once again.

The ABI’s own statistics show that in 2012, the latest year for which data are available, 19.6m UK households had motor insurance. Multiplied by £50, and assuming that each household has just one premium, that would mean a potential boost to profits totalling £980m.

In fact the average household in Britain has two cars – suggesting the windfall could be hundreds of millions of pounds higher.

Ready to speak to us? Let us help you.
Make your claim >>
0800 205 5556

Get a FREE callback

Complete the short form below and
we will get right back to you.


  • A very professional company of solicitors. I was very happy with the service you provided.
    by Stephen Stothard
  • Thank you for the work you have done on my behalf
    by Mr Roy Fox
  • Very good service, friendly and punctual.
    by Mr Kantilal Panchal
  • A special thanks to my claim handler who was always helpful and professional, he is a credit to your company. Thank you
    by Mr Colin Royston
  • My file handler/the firm has been fantastic from start to finish. Thank you
    by Miss Veronica Caruso
A proud member of

How much is your claim worth?

Compensation Calculator >>


One in three people with legal problems in UK develop health issues – report

One in three people with legal problems in UK develop health issues – report

The Guardian World Justice Project survey sheds new light on troubling link between legal issues and mental illness Almost one-third of those with legal

Police chief admits ‘cultural problem’ with evidence disclosure

Police chief admits ‘cultural problem’ with evidence disclosure

The Guardian CPS or forces’ failure to disclose stopped 900 criminal cases in England and Wales going ahead Police forces have a “cultural problem”





Need to speak to a solicitor? Call: 0800 205 5556


Tel: 01254 505090
Tel: 0800 205 5556

Harwood Solicitors
Suite 10 Freckleton Business Centre
Freckleton Street, Blackburn BB2 2AL

Contact us

Tel: 01254 505090
Tel: 0800 205 5556

Harwood Solicitors
Suite 5 Enterprise Centre
Furthergate, Blackburn BB1 3HQ

Authorised and regulated by the Solicitors Regulations Authority: SRA ID 564347
Request a call back Compensation
Start Your Claim