Motorists wasting millions on ‘pointless’ personal injury cover

Thousands of motorists in Nottingham are wasting money on unnecessary legal expenses insurance, according to a city lawyer.

The insurance usually costs between £15 and £20 and is included in most motor policies to cover personal injury claims. The charity campaign group, the Motor Accident Relief Society, estimates that needless insurance costs drivers £270m a year and it has called for an investigation into the system by the Office of Fair Trading.

Faizal Essat, of Andersons solicitors in Nottingham, says the charge is just a way for insurance companies to earn more money from the unwitting motorist who doesn’t even need legal expenses cover.

“Most personal injury claims are handled on a no win, no fee basis which doesn’t cost the driver anything. He’ll also be able to choose a solicitor for himself.

“If he makes a claim using his legal expenses insurance, he may find his claim is sold to a solicitor chosen by the insurance company.

“The solicitor assigned to him may have to pay a fee of about £600 or £700 for the privilege of taking on the case. In those circumstances, the solicitor may be tempted to cut corners to reduce his costs and so not provide the best service.”

Faizal Essat says the system suits insurance companies because they get paid when they sell the insurance and then get paid again when they sell the case. However, it does nothing to help drivers.

“The motorist would be better off keeping his money and then if ever he needs to make a claim, he can choose a solicitor to deal with the case on a no win, no fee basis.”

Faizal Essat is a Legal Executive Advocate at Andersons Solicitors he can be contacted on 0115 988 6707 or by emailing: fessat@andersonssolicitors.co.uk