Are law firms to blame for spiralling motor insurance premiums?
Hola, banditos! It is I, Len Dastard, former Mexican wrestler turned litigation executive. I'll shortly be donning my Cape of Fear™ heading to the coast for a Bank Holiday of Tequila, which will inevitably end in me knuckling some drunken estúpido in his los dientes, so he might chupar his desayuno through a paja for a la emana. Pardon my French.
I am preparing a guide to pursuing a claim for personal injury, having been asked by several avid readers for guidance on this topic. While preparing this guide, I read the following news item and would appreciate your thoughts and comments.
Simon Douglas, director of AA Insurance, has suggested that law firms are partly responsible for the sky high motor insurance premiums that many drivers nowadays face. The latest figures available state that collisions on the road fell by 6%. Good news? Sadly not. The number of road traffic injury claims rose by just over 13%.
According to the AA British Insurance Premium Index, the average cost of a comprehensive policy rose to £892 in the first quarter of 2011. That is roughly a whopping 40% more than the very same period in 2010.
Further facts indicate that 200 whiplash claims are made every day for accidents up to three years previously. You might remember the piece that I put together which briefly touched on the Limitation Act 1980 - you can find it here.
The AA said that they have received reports of solicitors promising payouts of at least £3,000 if car accident victims take legal action. In response to these claims a Law Society spokesman said that solicitors were highly regulated and prohibited from techniques such as cold calling and asked that insurers distinguish between solicitors and claim managers.
Who do you think is to blame for the rising cost of insurance? The personal injury lawyer? The person who caused the accident? The victim for pursuing their claim? The insurer? Let me know your thoughts in the comments below, and I will incorporate them into my upcoming guide to making a personal injury claim.