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Local Insurance Company Supports Government Ministers to Cap Whiplash Claims

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.

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