Statistics have shown that legal fee costs for personal injury claims are adding on average £40 to the cost of a yearly car insurance policy.

Ten pence from every pound spent on car insurance premiums will go directly to personal injury lawyers due to rising legal fee costs of personal injury claims after an increase in road traffic accidents.

Leading the study, the Association of British Insurers acknowledged more than 50,000 personal injury claims associated with car accidents; as well as noting that the influx in the cost of legal fees is a contributing factor to the rise in car insurance premium costs.

With the average personal injury pay out at £2,430, the cost of legal fees estimates at around £2,000.   Those additional costs are then carried over onto the driver by higher priced car insurance premiums.

Since recent findings have come to light, demands have been made to modify the claims process for faster and more efficient results so that a reduction in the cost of legal fees may be possible.

The Association of Personal Injury Lawyers have established that the claims system has undergone a complete revamp so that the process will be easier and assist in reducing costly legal fees.