Road accidents are common – it’s the reason we all have a legal responsibility to have insurance which covers us all for any accidents we cause. But the sad story is that the insurance companies are somewhat displeased that their heavily lined pockets are being ever so slightly dented with claims against their policy holders; which in itself is a bit of a conundrum, given that the insurance product they sell is designed to insure people!
So, the insurance companies have for many years now being finding ways to save themselves some money – which unfortunately can end up having a serious negative effect on a claim for personal injury.
But how?
Well, the insurance companies’ involvement is normally known as Legal Expense Insurance – so here’s the real explanation as to what exactly Legal Expense Insurance is:
Legal Expense Insurance
If you are ever unfortunate enough to be in a road accident, it’s likely your insurers will contact you and advise you that you have the benefit of Legal Expense Insurance, which provides legal representation at no cost for you! You may have even being paying for it as part of your policy. But exactly what is Legal Expense Insurance?
Well, in short – Legal Expense Insurance is the “great insurance scam”…
All your insurance company actually does is refer your claim to one of their “approved” panel solicitor firms. Of course, when I say refer, what I actually mean is sell – yes, they sell your claim on to a solicitor for a referral fee. Not only that, but because they have a panel of them, it’s the highest bidding law firm that gets the case! But what does this mean for you and your claim?
- The solicitor you are referred to – you have had no choice in the matter; how can you trust them to be a firm with your interests at heart?
- The firm you get will be the highest bidder – i.e. the one that’s paid the most amount of money to buy your claim. Sadly for them, these referral fees are not recoverable from the other side.
- So, where does their money come from? The money comes straight out of the budget / running costs for your case. This leaves you with a solicitor that already has less money to spend on you and your claim right from the start – in fact, they can pay anywhere up to £800 just to buy your case.
- £800 is more or less the base running costs for a straight forward claim for compensation. That potentially leaves your solicitor with a budget of nothing!
- If your claim has been passed over for a referral fee, they are duty bound to inform you in some way – whether by phone, or whether it’s hidden in the small print of their paperwork.
- Lastly, your insurance company profits from absolutely nothing! In fact, they are in the money even more if you have being paying for Legal Expense Insurance as part of your policy.
So, what does this mean for your claim:
- With less money to spend on the case, the service levels they provide are poor. I can say this with a degree of confidence given that we often receive calls from people who have gone down this route, and they all have common complaints:
- Solicitors not calling them back – or any call backs never being returned.
- Concerning low levels of contact with clients – at worst, I have heard people complain of months going by without knowing what’s going on with their case.
- Unqualified / inexperienced claims handlers dealing with your case.
You should have a fully qualified specialist injury solicitor representing you for your case, with years and years of knowledge and experience in dealing with personal injury claims. You should always have your calls returned, and your solicitor should make every effort to keep in regular contact with you – e.g. we contact our clients as a minimum of every 14 days.
- Less compensation – yes, it is more than plausible. With a solicitor that has hardly any money to spend on your case, you must ask yourself the question: how hard are they willing, or able, to fight to ensure you get the maximum compensation you are entitled to receive by law? Have they ensured to endeavour to recover all of your losses? – e.g. lost earnings, private medical treatment, and care and assistance from family members or friends?
- The truth is, with less money to spend on your case, they have less money to actually fight harder to maximise your payout .This means less compensation for you…
And why does this happen? Because your solicitor has wasted so much of their budget that they cannot afford to provide you with the high service levels you deserve. They cannot afford to fight hard to ensure you get the maximum compensation you are entitled to receive.
Simply put, they don’t have the money to provide you with a great service, and they don’t have the money to fight hard for your claim.
It’s a recognised problem; and although it isn’t illegal to buy and sell claims around, we don’t believe it is ethical practice. All of our clients come directly to us, which means we can afford to spend much, much more on their claim to ensure they get a great service and the best compensation payout.
In fact, the Law Society and the Barristers Council have recommended that referral fees be stopped, on the grounds that they have the potential to limit access to justice and reduce the quality of legal services on offer. So don’t take our word for it – the problem is out there.
For more information on the subject, don’t hesitate to give us a call for some free, no obligation legal advice on claiming for compensation.
The best advice I can give you right now:
Instruct your own independent firm of specialist personal injury lawyers – don’t let your claim be sold to the highest bidder. You have the right to choose – and with a genuine lawyer operating under a genuine No Win No Fee; you won’t have to pay a penny – guaranteed!
