 | Insurers inflating repair bills - will we ever find out the truth? |
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| Posted By : Bill On 31/07/2017 11:00:00 | |
| According to the Telegraph this morning, drivers are being “ripped off for motor insurance”, ie being overcharged for motor cover, because insurers are using secret deals to grossly inflate repair bills. They say that insurers are routinely inflating repair costs by as much as 100 per cent, while receiving undisclosed kickbacks for the difference. The process could be creating a hidden cost of £750m, equivalent to around 5 per cent of the UK's 34 million drivers' annual insurance premiums. If this turns out to be true, it would make a mockery of the recent publicity which the insurers have been arranging, to the effect that the method of calculating personal injury compensation (the “discount rate”) is flawed, and should be changed so that severely injured claimants do not recover as much money as they do presently. Their carefully arranged PR has been targeted at the public, ie drivers, and has asserted that the recent change in the law will cost drivers millions or billions. That won't sit well with the notion that there may be an internal insurance scheme which is inflating claims against other insurers. Will we ever find out the truth? Will the Government read this article, and wonder about the truth behind the intense lobbying currently being carried out by insurers against the discount rate? Not a chance! | |
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