Personal injury claims blamed for rise in car insurance premiums

Mon, 14 Mar 2011

The growing trend for motorists involved in an accident to make personal injury compensation claims is to blame for rising car insurance premiums .

That is according to Robin Reames, claims director at swiftcover.com, who estimates that the practice has added as much as 25 per cent to car insurance costs in recent years.

It follows an investigation into the rising cost of motor insurance by the Transport Select Committee.

The committee blamed personal injury claims as well as increasing levels of fraudulent claims on bourgeoning premiums.

"The Cost of Motor Insurance report is accurate stating that there has been an increase in the costs of compensation claims as a result of personal injury claims firms - something we highlighted as part of our submission to the consultation," said Mr Reames.

"I believe that a direct result of this immoral practice has resulted in premiums rising by as much as 25 per cent."

The government is currently considering a recommendation to ban or cap referral fees - a practice where insurance companies charge claims management firms for details of a claim.
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