"Britain now the whiplash capital of EU" as claims cost £5.5m a day By CHRIS MARSHALL Published on Tuesday 14 February 2012 16:11 WHIPLASH claims costing £2 billion a year are to be tackled as part of the effort to reduce the UK's "compensation culture." Prime Minister David Cameron held a summit with insurance, consumer and business groups in Downing Street yesterday to look at ways of bringing down soaring premiums. Britain has become "the whiplash capital of Europe," Number 10 said, with 1,500 claims a day for even the most minor accidents adding £90 a year to the average insurance bill. Motoring organisations and insurers have long blamed the rising prices on "ambulance chasers," law firms which look to win damages for anyone involved in a car accident. The situation is slightly better in Scotland, however, where premiums are lower due to the legal system making it more difficult for such firms to operate. Mr Cameron said: "I am determined to tackle this damaging compensation culture which has been pushing up premiums. I want to stop trivial claims, free up businesses from the stranglehold of health and safety red tape and look at ways we can bring costs down. The insurance industry plays such an important part in all our lives - it is there to help when we are at our most vulnerable and at greatest need. But I want to ensure that we all do what we can to help people through this difficult time. Ministers are examining recent calls by the Commons transport committee for a higher threshold - using factors such as speed or more extensive medical evidence. Other issues to be examined are the wider use of in-car monitoring of young drivers, reform of the "no-win, no-fee" system and reducing lawyer fees for small personal accident cases. Concerns raised by businesses that they are being forced to go far beyond legal minimums in order to secure insurance cover will also be discussed. Shadow transport minister John Woodcock said: "The vast majority of motorists drive responsibly and yet continue to be hit by eye-watering increases in insurance costs, in part due to the sheer number of dodgy whiplash claims. Motorists are already feeling the squeeze from the VAT hike on fuel and want to see less talk and more action from this out-of-touch government. Getting insurance costs under control requires the government to bring forward concrete proposals and as a start support Labour's proposal to limit whiplash claims. According to the AA's benchmark British Insurance Premium Index, the average quoted premium for a comprehensive car insurance policy rose by 15 per cent over 2011 and by 33.2 per cent over 2010. Otto Thoresen, director-general of the Association of British Insurers, said: "This is a unique opportunity to highlight to the Prime Minister the unacceptable cost pressures that insurers are facing, and what needs to be done to ensure that the UK's honest motorists get a better deal. We welcome the personal interest of the Prime Minister in this and the government's willingness to consider radical reforms which will be necessary to tackle the UK's compensation culture. Young drivers aged between 17 and 22 have been particularly badly affected by the current increases with the typical premium for this age group standing at £2,497. Many insurers no longer offer any cover at all to those aged under 21. The House of Commons transport committee published a report last month which called for a higher threshold for the payment of any compensation in whiplash cases, cited as the main cause of high premiums.