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Autumn Statement: Government to crack down on insurance fraud

Whiplash claims cost the country £2bn a year, an average of £90 per motor insurance policy. The Government said it intends to introduce measures to end the right to cash compensation for minor whiplash injuries, and will consult on the details in the New Year.

Mr Osborne said: “We’re going to bring forward reforms for the compensation culture around minor motor accident injuries. This will remove around £1 million from the cost of providing motor insurance. We expect the industry to pass on this saving so motorists see an average saving of £40-50 per year off their insurance bills.”

The Government added that this will “end the cycle in which responsible motorists pay higher premiums to cover false claims by others”.

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Natalie Middleton

Natalie has worked as a fleet journalist for 16 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day. As Business Editor, Natalie ensures the group websites and newsletters are updated with the latest news.