Most motorists will be aware that filing car accident claims following an accident is both their legal right and in some cases a necessity. Compensation is simply designed to put people back into the position they were in before their accident. This can sometimes only be achieved by offering a monetary amount. But unfortunately, some drivers are taking advantage of the system and making car accident claims which are spurious and giving the whole profession a bad name.
These types of claims are leading to increased costs for all drivers. The AA has said that, in 2010, the average insurance premium for all drivers increased by 11 per cent and the Association of British Insurers (ABI) has stated that around £40 of car insurance premiums are due to the high cost of car accident compensation.
The ABI has also pointed out that making the system for claiming compensation easier and quicker would result in lower costs for all. They have shown that around ten per cent of all motor insurance premiums are going to lawyers who make car accident claims on behalf of their clients.
A system where people can claim their rightful compensation without an elongated and expensive process will mean that lower lawyer fees will be paid and more of the compensation can go to those people who deserve it. However, it would do little to prevent those who do not have rightful claims from taking advantage of the system and bringing the claims industry into disrepute.
The Association of Personal Lawyers has responded to this by suggesting a new system which will make claims of less than £10,000 more straightforward, and this has now been implemented. Hopefully, this new way of processing compensation claims for car accidents will result in lowered insurance premiums for all drivers.
While these moves are positive, the personal injury claims industry needs to seek legislation which will prevent those who do not have legitimate claims from making money from the system. It will give the sector a better image and will encourage those who truly deserve compensation for their car accident injuries to get what they are entitled to.