Whiplash Becoming a Fraud in Auto Insurance

Recent studies show that whiplash and other back injuries claims are costing insurance companies a lot more in their auto insurance bill. The number of whiplash claims has spiralled to 550,000 a year, landing insurers with almost $3billion more cost.

Whiplash is a neck and spinal injury most commonly caused by a rear-end car collision. Generally, the driver and passengers in the vehicle that was hit from behind sustain the whiplash injury. There are almost 1500 insurance claims that are made every day and these are killing insurance companies. But the sad truth is for too long whiplash has been seen as the “fraud of choice” for insurance claims. It found that 95% of drivers say they believe unnecessary whiplash claims are behind increases in car insurance premiums, which have jumped 80% since October 2008. Research also shows that almost 400 among 1000 drivers that made their whiplash insurance claims spent their compensation on medical treatment or physiotherapy. Others used the money to pay off debts, buy luxury items such as TVs and computers (12%) or to go on holiday (9%).

So here’s my final thought for drivers, it is definitely a need to include whiplash in your auto insurances. But dont use it as a fraud to claim insurances. Be more responsible. And for insurance companies, make sure to establish a system to determine whether a driver is really suffering with Whiplash or not. More effective diagnosis of whiplash will help genuine claimants get paid out quickly and reduce the scope for fraud.