Five Myths The Insurance Companies Want You To Believe
If you deal with them directly and are reasonable with them, you will get a reasonable response
This is simply not true. They will at all times try to minimise their losses and will severely under value any offer that they make to you. Remeber they are a private company that answers to shareholders not a charity.
The best know trick is that if you have dealt direct with an insurance company over a whiplash claim they will offer you £800 and tell you that it is a great deal. The actual minimum compensation in Scotland for whiplash is £1500 so as you can see they will and do undercut you at every opportunity.
Scotland is in the grip of a compensation culture crisis
When the government’s Better Regulation Taskforce headed by Lord Young investigated "the compensation culture" they were unable to find any evidence of it existing. The reality was that the number claims in general had fallen compared to ten years ago.
When looked at further it would appear that these statement about a compensation culture had originated from the insurance companies themselves and picked up by the newspapers.
My insurance premiums are going up because of whiplash claims fraudsters
The Office of Fair Trading carried out an investigation into the cost relating to car accidents and found that the costs in Scotland were significantly lower than comparative countries.
Claimant fraud is rife
As with the last two myths this is a marketing ploy to the general public to stop them from claiming. 99% of motor claims are paid out yearly with only 1% being fraudulent.
To categorizes 1% as rampant fraud is really gilding the lily however insurance companies continuously seek to exaggerate the scale of the issue to ensure that they do not have to pay.
An accident claim represents a golden ticket to riches
This is more of a myth that claimants believe. Damages in Scotland are set by a judge and not by juries as is the case in the USA were we hear of these extraordinary large awards.
In Scotland there is a sense of 'soldiering on' with your injuries and as such the awards are not that high.
A good example would be the award for total blindness which is £180,000 which to be fair is not a great amount of compensation for losing your sight.