Following government legislation, from 31st May 2021, the way in which claims for personal injury compensation up to £5,000 are made following a Road Traffic Accident is changing.
Up until this date, if you were injured in an accident that wasn’t your fault and wanted to claim compensation from the negligent party, you could appoint a solicitor to do this for you and as long as the value of your injury compensation claim was over £1,000, which they almost all are, the negligent party’s insurer would pay the solicitor’s legal costs for representing you.
From 31st May, the value of their injury compensation claim will need to be over £5,000, which they almost all aren’t (at least 9 in 10 cases are expected to settle below £5,000), before the solicitor can recover their legal costs from the negligent party’s insurer.
What do these changes mean for you?
If you, or a passenger in your vehicle, are injured in an accident which isn’t your fault and you want to pursue a claim for personal injury compensation with a value less than £5,000, you will have 3 options:
1. Employ a solicitor to represent you and pay their legal costs yourself.
We can’t say how much individual solicitors will charge but as a guide, we can tell you that our recommended solicitor will charge 25% inc VAT of the compensation awarded.
Pain and suffering caused by a Whiplash Injury is the most common injury from a road traffic accident so lets look at two examples to see what this would cost you.
| WHIPLASH INJURY LASTS | COMPENSATION | YOUR DRIVERS LEGAL COSTS (25% INC VAT) | YOUR DRIVERS COMPENSATION AFTER THEIR LEGAL COSTS |
|---|---|---|---|
| 6 Months | £495 | £123.75 | £371.25 |
| 12 Months | £1,320 | £330.00 | £990.00 |
2. Present your claim direct to the negligent party themselves.
To help you do this, the government has launched the Official Injury Claim Portal, where you can arrange a medical, upload documents, negotiate compensation for your injuries and any uninsured losses you have, such as your policy excess or any loss of earnings, and manage disputes, such as who was at fault or how much compensation you are due, direct with the negligent party’s insurer yourself.
If you can’t negotiate an amicable settlement and have to issue court proceedings, you would prepare your case and represent yourself in the small claims court
3. Purchase a motor legal expenses policy from your broker.
Pay the small premium for a Motor Legal Expenses policy and then a claims professional will:
- Manage your claim through the portal for you
- Prepare your case for court and represent you
- Pay all your legal costs so you keep every penny of your compensation
- And do the same for any injured passengers too!
That’s why we say Motor Legal Expenses is more valuable than ever!
Oh, and you get cover for many more potential everyday disputes too.
- Defence of a Criminal Prosecution for a Motoring Offence.
- Motor Vehicle Contract Disputes.
- Vehicle Cloning
- Illegal Clamping & Towing
- Unenforceable Parking Fines
- Motor Insurance Database Disputes
- Licence Protection
- Emergency Hire Vehicle
*Subject to policy terms & conditions.