Insurance premiums will continue to skyrocket for motorists as a result of the government's decision to shelve proposed whiplash reforms, the AA has warned.
The group said that the decision not to include the Prisons and Courts Bill in the wash-up, to how whiplash injuries are compensated will result in higher premiums for motorists.
Michael Lloyd, AA’s director of insurance said: “This is the second time that the reforms have been dropped. They were shelved last October following the Brexit vote, but were re-introduced by the new government.
“Drivers have seen their car insurance premiums rocketing and most will react with despair that the whiplash gravy train once again has the green light to carry on.
“There was some hope that if claims could be stemmed it would help to bring premiums down. There seems little prospect of that now.”
The shelving of the reforms have seen mixed reactions from the industry, with both the Association of British Insurers and claimant lawyer groups pleased that the reforms did not go through in their existing form.
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