Auto Trader

How much will it cost?

The main concern for many people considering an insurance claim following an accident is the cost. The cost will depend on how you decide to pursue the case with the main options listed below. A firm of solicitors are likely to be instructed at some stage, whether directly, or via your insurance company or a claims management company. Only a solicitor can represent you if your case goes to court.

Solicitors Costs
Claims Management Company
Legal Expense Insurance
Acting For Yourself

1. Solicitors Costs

Many solicitors now agree to pursue cases on a ‘no win no fee’ basis. Under the agreement the solicitor will agree not to charge you if the case is unsuccessful. If the case is successful, the bill will be passed onto your opponent’s insurer. Your opponent will only have to pay your 'reasonable costs', and it is worth asking your solicitor to guarantee any costs not paid by your opponent will not be deducted from your compensation.

Some solicitors will also suggest you take out an insurance policy when you sign the conditional fee agreement. You would make a claim on the insurance policy if you lost your case, and it would cover your opponent's costs and often your own expenses.

ALWAYS ask your solicitor: 'Will there be anything to pay if I lose, and will anything be deducted from my compensation if I win?'

You can apply for legal aid in cases involving exceptional circumstances or injuries. In these cases, you need to approach a solicitor with a 'Personal Injury Franchise'. You can get a list of firms with a franchise from the Law Society, the Community Legal Service, or your local Citizens Advice Bureau.

Finally, you can pay your solicitor on a private basis. This is the traditional way of paying for a solicitor, and you would be responsible for the solicitor's fees and expenses whether you win or lose your claim.

2. Claims Management Company

If you don’t wish to approach a solicitor directly, you can contact a claims management company. They will approach a firm of solicitors on your behalf ensuring they have the proper experience to deal with the claim.

Varying levels of ongoing service and accountability may be offered as you pursue your claim. Some companies will raise an additional charge to the solicitor. Again, always ask: 'Will I have anything to pay if I lose the case, and will I have anything deducted out of my compensation if I win?'

3. Legal Expense Insurance

Many household and motor insurance polices now include 'legal expenses insurance' as an option. It should be clear from your policy documentation whether or not the cover is available, or you could telephone the insurance company or your broker directly.

The insurance company will often nominate a firm of solicitors to act on your behalf, although it may be possible to request a firm of your choosing. The policy will normally cover your opponent's costs if you were to lose the claim so there would be no need for a conditional fee agreement. There is a limit under the policy as to the amount of your opponent's costs which will be covered. Always check the limit.

4. Acting for yourself

If you’re injured in the accident, or wish to claim for expenses in excess of £5,000, it is not recommended that you act for yourself. However, if there is no injury, and your expenses are relatively low, you may bring a claim in your local County Court under the 'small claims procedure'.

Information leaflets and the necessary forms are available from your local County Court upon request. The Citizens Advice Bureau may also be able to offer some advice regarding this type of claim.