Whiplash news -

Sharp rise in cost of car accident cover

The Association of British Insurers has claimed that "unnecessary" claims for injuries such as whiplash are responsible for pushing up the cost of car accident cover.

This allegation comes only days after the AA revealed that during the second quarter of 2009 the cost of motor insurance premiums rose at the fastest rate in nearly a decade.

According to the ABI, this is attributable to legal fees associated with car crash injury claims, most typically for whiplash. The organisation says that for every £1 paid out in compensation, a further 40 pence is paid out in no win, no fee solicitor fees.

"We believe that the vast majority of non-contentious personal injury claims can be settled just as quickly without the need for lawyers to be involved without any reduction in compensation for the customer," said an ABI spokesperson.

However, it is an age-old debate, with whiplash solicitors instead arguing that excessive legal costs are usually attributable to intransigence on the part of insurers.


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