Legal fees push up car insurance premiums
Car insurance premiums are on the rise, due to increasing legal costs for car
accident claims. Nowadays people are more likely to make a claim for personal injury if they have been involved in a car accident. This has been attributed to the high number of no win no fee lawyers who advertise widely.
However under the current system personal injury claims are taking a very long time to settle and thus costing huge amounts in legal fees. This cost is forcing
insurers to raise the cost of their premiums in order to avoid losing money.
Most of the car accident claims made in the past year were relatively straight forwards and should have been easy to handle, yet they still took an average of over seven hundred days to complete. There is a call to the government to introduce strict timelines on claim handling to ensure that claims are handled in a timely manner, and try and reduce some of the legal fees involved.
Updated on 5/16/2008