Road accident claims 'driving up insurance costs'

The number or road accident claims in Britain are having an effect on the overall cost of insurance, according to one expert.

That is the opinion of Otto Thoresen, the Association of British Insurers director general, who made the claim after the Office of Fair Trading asked for the insurance industry to explain its reason for driving up premiums.

However, he noted that the main reason for this is personal injury claims, insurance fraud and uninsured drivers, with whiplash claims in particular a common complaint.

"Insurers are acutely aware of the impact that higher motor insurance premiums have for their customers. This is why the industry is doing everything possible to reduce costs, for example," Mr Thoresen said.

Recently, a man who claimed injury compensation after a road accident was jailed for contempt of court.

Graham Loveday, a former lorry driver, was handed the nine-month jail sentence after adding pictures to Facebook of himself and his wife on a driving holiday from Wales to Italy.

Posted by Tessa Jones