Insurers paid out more than £2 million in whiplash injury claims last year adding around £90 onto the cost of an average car insurance policy, according to research from the AA.
Car insurance premiums have seen the biggest rise ever recorded over the past two years because of these claims, with the average quote for a comprehensive policy now 50% more expensive than it was in 2010.
Following the news, the AA is calling for action to end "Britain's whiplash compensation culture" ahead of a government insurance summit in Whitehall today.
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Reforms announced could include a tighter timescale applied to resolving whiplash cases and new rules for insurance companies to question dubious medical claims.
Simon Douglas, director of AA Insurance, says there must be stricter action on cold-call claims management and personal injury firms that, he says, have contributed to the growth of claims.
"The present dysfunctional system has spawned a fraudulent multi-million pound 'cash for crash' industry. Reform can't come soon enough. It is wrong that injury claims are rising while the number of accidents on Britain's roads is falling," he says.