Car crash personal injury claims ‘up by 18%’

Road accident personal injury claims have risen by almost a fifth in the space of a year, despite the number of crashes falling, a new report suggests.

According to the Institute and Faculty of Actuaries’ study of UK claims data, the proportion of third party accidents involving bodily injury climbed by 18 per cent from 2010 to 2011, the largest rise ever recorded.

The leap in claims increased costs to insurers by around £400 million in 2011, the analysis estimates.

However, it added that the number of car accidents prompting third party claims fell by 11 per cent over the same period.

The Institute’s report also claims there is a “clear correlation” between injury hotspots and claims management company locations, with clusters in Liverpool, Manchester and Birmingham.

David Brown of the Institute and Faculty of Actuaries said: “The increase in costs to insurers because of the rise in bodily injury claims is likely to result in a rise in motor insurance premiums for drivers.

“The clear correlation between claims management companies office locations and the hotspots for bodily injury claims suggests that the two are interlinked.

“We expect to see legislation coming soon which will affect the way in which claims management companies do business, which may account for the significant increase seen in 2011 – it is possible this is a last hurrah.”

Free income guide

Follow Myfinances.co.uk on Twitter: @news_myfinances

Sign up to the Myfinances.co.uk newsletter to receive the latest financial news direct to your inbox.