The Association of British Insurers (ABI) has said that recent “alarmist headlines and misleading reporting” have clouded the real reasons for the rising cost of motor insurance policies.
The comments come after ITV aired a documentary on car insurance prices, which suggested that dishonest whiplash claims and inflated credit hire prices were at the heart of the problem.
Called Secrets of Your Car Insurance, the programme said that 75% of all personal injury claims in Britain were for whiplash, whereas in France that figure was only 3%.
James Dalton, director of general insurance policy at the ABI, said: “In contrast to some recent alarmist headlines and misleading reporting, ITV Tonight provided a clear picture of what is driving up the cost of motor insurance premiums.
“From staged accidents to inflated credit hire charges, claims management firms bombarding people with nuisance calls and texts to rising repair bills, insurers are facing increased costs across the board.
“Providing the best deal for honest customers remains the priority for insurers and the industry is doing all it can to reduce unnecessary costs. But we cannot do this alone, which is why it is important that the Government pushes ahead with introducing further whiplash reform and doesn’t deliver consumers a double whammy of higher IPT charges on top of already increasing premiums.”
Last week, Louise Ellman, the chair of the Transport Select Committee, had hinted that insurers were not fulfilling their promises to lower premiums despite a fall in whiplash claims.