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Cheaper Car Insurance with No-Win-No-Fee Rule Changes

Published: 01/04/2011 by Comments


It may be possible for Brits to benefit from cheaper car insurance. Ken Clarke, the Secretary of Justice said that improving the “no win, no fee” arrangement can reduce costs supported by insurers, an example of such insurers being the NHS.

These kinds of deals are for a ‘breed’ of lawyers called “ambulance-chasers”. An “ambulance-chaser” will struggle to make self-indulgent claims. If a lawyer wins, then his “success fee” is paid by the other party, the one that had been sued and had also lost.
This new law arrangement would leave the lawyer with only a 25 per cent maximum of all the damages given to his or her client. There is a sum consisting of more than £40 added to the motor insurance premiums for just initiating a personal injury claim, this being stated by the Association of British Insurers.

ABI’s Nick Starling pointed fingers at lawyers for abiding by a “compensation culture”. He did say that: “The result has been a slower process for genuine claimants and out of control legal costs that end up being paid for by all consumers through higher premiums.”


Personal injury claims seem to be the main culprit for a rise in car insurance costs for the last few years.

Nick Starling also said that: “By implementing in full the recommendations of Lord Justice Jackson’s review of civil litigation, the Government has addressed the injustices of our civil justice system. And motorists, who are paying an extra 10 per cent on their motor insurance as a result of high legal costs in settling personal injury claims, can look forward to cheaper insurance in the future.”

The AA has revealed that car insurance costs got up to about 33 per cent in 2010, and they are expected to go up another 20 per cent for the current year. Ken Clarke said that more measures will be taken into consideration for the month of June.


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