<p>If you drive a car, you need to take out vehicle insurance; however, some motorists may not be aware of how the cost of car repairs can affect the price of a policy.<br />
<strong>Passing on the expense<br />
</strong><br />
Car insurance generally covers the cost of getting things fixed should something happen to your car. Claims management companies (CMCs) see policies as a way of making more money by inflating the cost of replacement vehicles and repairs after accidents. They are doing this as it is much harder to make money from false or somewhat bogus whiplash claims in court due to a change in the law.<br />
The average consumer may not care too much about this; however, someone has to pay for the repairs and these inflated costs will push up the price of car insurance and motor trade insurance. <a href="https://www.theguardian.com/money/blog/2017/apr/29/whiplash-injury-claims-accident-myth-neurosurgeon-speaks-out">The Guardian</a> published an article about fake whiplash court claims and what money-makers they are, with &#8216;victims&#8217; receiving total payouts of £2bn a year.<br />
<a href="https://haznos.org/wp-content/uploads/2019/01/insurance1.png"><img class="wp-image-31122 aligncenter" src="https://haznos.org/wp-content/uploads/2019/01/insurance1-300x200.png" alt="" width="558" height="372" /></a><br />
<strong>Image Credit</strong><br />
<strong>Inflated prices<br />
</strong><br />
The cost of settling whiplash claims currently adds around £50 each year to the average insurance policy cost. From August 2019, CMCs will not be able to pursue mis-sold payment protection insurance claims and it is thought that they will have to find other areas to make some cash. The Association of British Insurers believes that CMCs may add generous margins to the costs associated with repairing or replacing cars after an incident to boost their coffers.<br />
CMCs can help consumers to get payouts; however, this comes at a cost, which is often passed on indirectly to consumers in other forms. Using CMCs as middlemen push up the prices for everyone; therefore, it is often better to pursue your own deals and manage these directly.<br />
If you want to find out more about how to get the best deals on motor trade insurance, or indeed many other types of insurance, it would be worth consulting a reputable broker such as https://www.quotemetoday.co.uk/motor-trade-insurance/.<br />
Many people will be glad to see the end of fraudulent whiplash claims and the extra costs many of us pay as a result; however, it is important to be aware of other ways in which CMCs may look to make money and the ethics of dealing with such companies.</p>

How rising repair costs could affect your insurance
