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The cost of a car accident injury claim

With nearly 250,000 injuries caused by road traffic accidents in the UK in 2007, it is no surprise that claiming for compensation is a multi-million pound industry. Between 1996 and 2006, over 2.1 million claims were made for compensation arising from car accidents (source; Association of British Insurers) and over £2 billion is paid out in claims for motor accidents each year. Most people make a personal injury claim for problems caused by head, shoulder, back and neck injuries, including whiplash. Whiplash claims can be difficult to prove; however, there can be no doubt that many claimants, through no fault of their own, are severely affected by their injuries, which can cause stress and pain.

The legal system is well set up to support those who can prove that they have experienced genuine distress and can also prove that they are not responsible for the accident that caused this. Over the last few years, the average cost of a compensation settlement has risen and so have the legal fees associated with this. Legal costs now average between 30% to 40% of the cost of a claim. This is having an implication for the car insurance sector, as the price of premiums needs to reflect this. However, there are now a number of national companies that specialise in “no-win, no fee” legal action. With greater advice available on how to make a car accident claim, the industry looks set to continue to grow.