Personal injury claims adding £2.4 million daily to the cost of insurance premiums

Personal injury claims adding £2.4 million daily to the cost of insurance premiums

New figures released this week show yet again that the high volume of personal injury and whiplash claims being made in the UK are putting extra strain on all policyholders as statistics revealed that £2.4 million is being added daily to the cost of insurance premiums, which equates to £30 extra a year to every policy in the country.

It’s estimated that £876 million is being paid out every year in legal fees, with £1,666 being added to the cost of insurance premiums in the UK every minute. The cost of an average car insurance policy now stands at £418 up by 18% in the last year, with legal costs as a result of personal injury claims being blamed for pushing up the cost of premiums.

In many cases, the legal costs often outweighs the amount of compensation won, with one case highlighted this week revealing a £37,250 bill was run up in legal fees pursuing a claim where the compensation won was just £15,000.

The recent figures were released by the Association of British Insurers ahead of a special insurance conference held in London this week. The ABI say the excessive legal costs for personal injury claims are unsustainable and are urging the government to push ahead with plans to implement legislation to limit the cost of legal fees charged in pursuit of a claim.

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