Car insurers have come under speculation by the Commons Transport Select Committee as encouraging car accident victims to press forward with charges, which in turn is pushing up insurance costs.
The Commons Transport Committee have advised that not only are details being passed between insurance and personal injury firm industries, but there is also money changing hands for the information.
Costs for the leads range from £200.00 up to £1000.00 and this is being paid by over 40% of personal injury firms or claims management firms across the country.
Due to this understanding, the accident injury industry is basically being funded by the rise in insurance prices, and these rises are going to affect everyone but predominantly young male drivers
Commenting on this trend, the ABP club have said that insurance companies are being encouraged and possibly targeted to follow up on all the claims coming in, as they will benefit from the charges to the lawyers who have received the cases.
People who have been in accidents in the past will probably be unsurprised by this news; as they have found that their insurance firms approach them to pursue no-win, no-fee claims through recommended companies advising that they can get compensation for injury.
Chair for the Transport Committee has stated that: “If insurance firms don’t agree with solutions to improve the simplicity around referral fees, then the government will take action with the matter in hand, by putting in place strong regulations regarding these issue”.’