Shopping for car insurance is not easy. There are so many alternatives, how to pick the right one? We have gathered the most useful and up to date information for buying and choosing the right car insurance. We hope this site proves useful for you in your quest! Don't forget to bookmark us and come back often!
Proposed Changes Could Result In Lower Car Insurance Premiums
by Michael Challiner
At the moment, the legal system in Britain forces all personal
injury claims to go through the courts and be judged on an
individual basis. Many of these claims crawl through the courts
at a leisurely pace, the result being expensive court costs.
Even worse, for every 0,,51 that is paid out in compensation,
it has been estimated that the legal profession receives 40p for
their legal work. This amounts to the British legal profession
receiving an estimated 0,,52 billion a year just from personal
injury claims ¨C unbelievable isnĄŻt it!
The insurance companies have to cover these costs, and itĄŻs
costing them so much that it has been estimated that for every
car insurance premium, around 0,,5200 of it will be going
towards paying these personal injury claim legal costs.
The Association of British
Cars at up to 90%
off the book value!
Insurers has decided to step in and
bring this practice to an end, and has made a proposal. The ABI
wants personal injury claims to be settled by an independent
arbitration system, instead of by the courts. It would work by
setting compensation payouts for set types of injuries, a system
that has been operating successfully in Ireland since 2004.
There, legal costs have been lowered by three quarters.
If the arbitration system proposed by the ABI is introduced,
each case would involve far less time and energy to resolve, so
naturally the costs would be far less. In Ireland, a back injury
that recovers within 12 months is allocated the English
equivalent of 0,,511,000. A neck whiplash injury recovering in
the same time span would receive a payout of the equivalent of
0,,59,400.
Ian Crowder, a spokesman
Get a free
brand new car!
from the AA, reiterated the benefits of
cutting the lawyers out, pointing out the fact that Ą°the
soaring costs of personal injury claims have been a significant
contributor to insurance premium inflation. If they could be
brought under control, premiums could be cut.Ąą ItĄŻs something
that we all wish for. Well, almost everyone.
The British Association of Personal Injury Lawyers is the only
party that donĄŻt want to see an arbitration system introduced
in Britain. Their objections are based on two beliefs, firstly
that the injured would lose their right to an individual hearing
and would be at the mercy of the insurers. Secondly, that their
research showed the initial offers made by insurers to be half
of the final compensation reached. They also state that two
thirds of defendants at first denied liability,
thatĄŻs what
takes these cases to court.
The experience of arbitration in Ireland so far has not
highlighted any of the issues highlighted by the British
Association of Personal Injury Lawyers as a problem.
Compensation values in Ireland have not decreased since
arbitrations, and people get their money up to 3 times more
quickly. WhatĄŻs more, legal costs have been reduced to a
quarter of their previous level
For years now, we have seen car insurance premiums rise at an
exponential rate ¨C we deserve a break ¨C so roll on
arbitration.
About the author:
Michael writes for Brokers Online who offer life
assurance and most UK financial services including car
insurance quotes.
Related Articles
Car Insurance Discounts -
Trying to save money wherever you can is important to us all. Insurance should be no different. Do not assume that your agent knows everything about...
What are the factors, which can affect car insurance rates! -
To insure our car from the unwanted incidents like road
accidents, theft etc. we generally choose the car insurance.
Doing so we always search for...
What You Need To Know About A Car Insurance Adjuster? -
If you're in need of a car insurance adjuster then there are a few facts you should know before you meet with him/her. The first rule of thumb is...
5 Considerations To Computing Your Car Insurance Premiums -
Have you ever wonder why car insurance costs vary from one car insurance company to the other? This is due to the different type of computation...
Car Insurance Top Tips -
The car insurance industry has got really competitive in the last few years, so prices haven't really changed much. There are now over 100 car...
Need more information? Try a search:
Latest news on Car Insurance