After recent news that car insurance premiums are rising at the fastest rate for a decade, it’s unsurprising that motorists are shopping around to save themselves some cash. There is some good news on the horizon though, as it’s been revealed that insurance providers could reduce the cost of said premiums by eliminating unnecessary legal fees for personal injury claims - one of the key factors behind this year’s car insurance increase.
The Association of British Insurers has indicated that insurance providers are finding ways to cut costs and, therefore, provide cheaper premiums for their customers.
One of the key ways that this could be achieved is to ditch the disproportionate legal costs on personal injury claims which have become a real issue for many insurance companies. For every £1 that insurance providers hand over when a motorist is injured in a crash, another 40p is lost to legal fees.
Malcolm Tarling, spokesman for the ABI, believes that ‘the vast majority of non-contentious personal injury claims can be settled just as quickly without the need for lawyers to be involved’. He emphasised that the planned cuts would not result in smaller payouts.
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