In 2013 dramatic changes were introduced in relation to the legal costs that can be recovered in Personal Injury claims. This led to a reduction in the costs that Defendant insurers have to pay to Claimant solicitors in successful claims. The number of Personal Injury claims have reduced by 23,000 since these changes were introduced yet car insurance premiums have risen by 19% in the past year.
Claimant solicitors campaigned against the reforms which were introduced in 2013, which have led to innocent victims of negligence now having to contribute to their legal costs.
Motorists are facing higher insurance premiums even though the industry is saving millions of pounds thanks to the Government imposing curbs on whiplash claims. Drivers have seen the cost of insuring their cars rise by nearly 20 per cent. But at the same time the insurance industry has saved around £520million because of a dramatic drop in personal injury claims, The Times reported.