It has been revealed that Liverpool is the whiplash capital of Britain, with over 50 residents making a compensation claim.

In the twelve months to March 2012, it was found that the number of whiplash claims in Liverpool was 22 per thousand residents.

In the report made by The Institute and Faculty of Actuaries (IFoA) it was also revealed that Uxbridge in West London and Oldham followed closely behind with 21 and 20 per thousand residents. Scotland was recorded as having the lowest rate.

According to insurers, whiplash claims are costing them £2 billion a year, with fake claims adding £90 to typical car insurance premiums.

Malcolm Tarling, of the Association of British Insurers, said: “This is the first time there has been a regional breakdown of where whiplash claims are being made.

“Whiplash claims have gone up by a third in the past three years while the number of accidents has gone down.”

A breakdown of GPs reports last year showed 25% of the 550,000 claims are over-diagnosed and at least 6%, which was £30,000 in whiplash claims, was found to be fraudulent. According to insurance fraud bureau, the UK insurers receive claims of up to 1,200 whiplash claims a day.

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