Are personal injury solicitors to blame for high insurance?

MPs have said that personal injury solicitors may need to carry some responsibility for rising motor insurance costs in the UK, especially in instances of personal injury claims revolving around whiplash injuries.

New studies have shown that drivers are paying nearly £1,000 on average for an annual insurance policy.  MPs have said that personal injury compensation payouts linked to an increase in volume for whiplash claims have been increasing costs for insurers, who then pass on the cost to their customers.

Insurers are caught over a barrel when it comes to whiplash claims, MPs said, because of the difficulties they face in challenging these claims.  However, the government was sharply critical of the actions of insurers, such as taking referral fees from car hire firms, garages, and personal injury solicitors, and passing personal details of drivers to third parties.

Claims management firms, solicitors, and insurers have all contributed to increasing premium prices by acting to encourage accident victims to make personal injury claims, according to a recent report published by the Transport Select Committee.  The report suggested tougher standards for whiplash claims, and also commented that motorists should face being rail-roaded into launching legal claims by cold callers.

Association of British Insurers representative, Nick Starling, shifted the blame from insurers to personal injury solicitors, remarking that massive injury payouts have been behind the premium prices.  Mr Starling called for cuts to legal costs and a blanket ban on referral fees as a way to reduce insurance premiums.

Customers are tired of receiving spam texts on their mobile phones, Mr Starling said, blaming ‘ambulance-chasing claims management companies and personal injury solicitors for the country’s so-called ‘compensation culture.’

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