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RAC calls for swift action to address growing insurance fraud

Press Release   •   Oct 17, 2016 17:33 BST

The RAC is urging the Government to clarify its plans to clamp down on fraudulent whiplash insurance claims.

Significant reforms to tackle illegal claims and strengthen regulation to protect law-abiding motorists were proposed in the last Autumn Statement by former Chancellor George Osborne and an initial consultation was due to be published this summer, but nearly 12 months on little or no progress appears to have been made.

The RAC's latest Report on Motoring highlights that high insurance premiums are a big issue for

motorists and have now become the number-one cost concern ahead of the price of fuel. As bogus claims reportedly cost the industry £3m a day with the knock-on effect impacting motorist’s premiums, the RAC is calling on the Government to confirm when its consultation will take place so that motorists are clear that action is underway to prevent further increases.

RAC Insurance director Mark Godfrey said: “Law-abiding motorists are sick to the back teeth with bogus whiplash and other fraudulent activity contributing to higher insurance premiums. We need the Government to step up and accelerate consultation on this so that appropriate changes can be put in place to ultimately help reduce insurance premiums for every motorist.

“We are now almost 12 months on from the Chancellor announcing that these bogus claims would be tackled once and for all, and we don’t seem to be any further on. It is difficult to understand what the delay has been, but it essential that the Government works with the industry in a consultation process to identify actions which will have the desired effect of reducing fraud while, at the same time, providing adequate protection and support for those injured parties with legitimate claims.

"Our latest Report on Motoring identified the high cost of insurance premiums as a top issue for UK drivers, overtaking the cost of fuel as the top motoring cost concern."

Notes to Editors

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About the RAC

With more than eight million members, the RAC is one of the UK's most progressive motoring organisations, providing services for both private and business motorists. Whether it's roadside assistance, insurance, buying a used car, vehicle inspections and checks, legal services or up-to-the-minute traffic and travel information – the RAC offers a solution for all motoring needs. The RAC is committed to making motoring easier, safer, more affordable and more enjoyable for drivers and road users.

The RAC is the motorist’s champion and campaigns to support the interests of its members and UK motorists at a national level, including advancing levels of road safety, supporting the needs of young drivers and voicing concerns about the increasing cost of motoring. The RAC’s annual Report on Motoring – first published in 1989 – provides a clear insight into the concerns and issues facing today’s motorists.

For the very latest news on UK fuel prices, check RAC Fuel Watch or follow #racfuelwatch on Twitter. This is a comprehensive guide to the latest UK unleaded petrol and diesel prices – both at the wholesale level and at the pump. RAC Fuel Watch analyses how prices changed through the previous month and compares the most recent prices with those from three, six and 12 months before.

Key facts:

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