Car Insurance Talk Shop is a Load of Hot Air

The big car insurance talk-in chaired by Transport secretary Justine Greening turned out to be just a load of hot air.

The talking shop was billed as a roundtable summit between politicians and industry movers and shakers that would solve problems.

The result was a big, fat zero for motorists who are unlikely to see the cheap car insurance they hoped for.

The meeting, in Whitehall, London, was talked up as a council of war against crash-for-cash fraudsters who have milked millions from innocent drivers with their spurious whiplash claims.

But after the talks, the minister admitted no one really had a solution to the industry’s problems.

“There is no one silver bullet to tackling fraudulent whiplash claims or reducing young driver premiums but we have already taken decisive action by banning referral fees, reforming no-win no-fee rules and cracking down on fraud,” said Greening.

“We will also work with industry to take full advantage of the use of telematics, or in-car black boxes, to give young people a greater choice of options if they want to drive.”

In other words, talk about car insurance turns out to be much cheaper than buying a policy, especially for younger drivers.

The government blames motorists for driving up the cost of premiums by profiting from a compensation culture that has pushed up claims by 70% in the last five years.

Around 1,500 whiplash claims are made every day, which cost the insurance industry £2 billion last year – equivalent to £90 on every driver’s premium.