Car insurance news
ABI welcome plans for change
The Association of British Insurers (ABI) has revealed its happiness at Justice Secretary Ken Clarke's ratification of a change to the regulations governing "no win no fee" cases. The influential organisation pointed out that this will restrict the currently extortionate legal costs and result in a fairer arrangement when it comes to insurance for car users.
In a landmark speech Mr Clarke said that lawyers' "success fees" will soon have to be paid by the claimant, rather than the accused party.
The ABI are of the belief that the "ambulance chasers" who currently adversely affect the system will begin to disappear once the reforms take effect.
Nick Starling, Director of General Insurance and health at the organisation, said, "These reforms are good news for genuine claimants, who too often struggle to get fair compensation under the current system. The ABI has long campaigned for reform that puts the genuine claimant at the heart of a simpler, faster, more cost-effective system.
The new regulations mean that drivers may potentially see a 10% decrease on the costs of car insurance.
Ken Clarke said, "I want to stop the perverse situation where fear of excess costs sometimes forces defendants to settle even when they know they are in the right."
In related news, Moneysupermarket.com has recently revealed that insurance for car users is 31% more expensive on average than last year.