Local insurance company West Craven Insurance Services has welcomed plans by government ministers to cap whiplash compensation claims.

Despite the UK having some of the safest roads in Europe and a fall in the number of accidents, whiplash claims are 50% higher than a decade ago. The claims cost insurance companies about £1bn a year.

But following a promise made last year, ministers are now looking at scrapping the right to compensation or capping it.

Currently the average pay-out cut is £1,850. But this could be capped to a maximum amount of £425 if the plans go ahead. These payments they state, are separate from medical bills or loss of earnings.

Motorists could see their car insurance premiums reduced as a result of plans to cut compensation for whiplash injuries by as much as £40 a year.