Cost of Making a Claim

One of the largest worries when making a claim is the cost involved. However, the cost of making a claim is primarily determined by the method you choose to pursue your case, such as consulting a solicitor.

If you decide to consult a solicitor yourself, and the decision to do so largely depends on how severe the accident was, you should be aware of any costs involved. Firstly, it is important to note that many solicitors will advertise 'no win no fee'. This means that if you lose your case, you will not have to pay them. Should your case be successful, some solicitors will recover their costs from your opponent's insurer, whilst others will deduct their fee from the compensation you receive. Be aware of costs: ask your solicitor whether you will receive all the compensation before agreeing to use their service.

A claims management firm can also be used to help you with your claim. These firms will gather advice from solicitors and may offer the same terms and conditions as conventional solicitors, such as 100 % compensation, and/or a 'no win no fee' deal. The offer varies between firms, so be sure to read all information carefully before opting for one firm over another.

In the event that an accident is your fault and you make a claim, motor legal protection can be purchased to cover the cost of consulting a solicitor or a claims management firm. When you have an accident, you will not be reimbursed for many of the legal fees associated with the claim. If you have motor legal protection your insurer will cover these costs. The cover will be limited to a certain sum; always check the maximum cover that your policy affords.

Instead of consulting a solicitor, you can choose to act on your own behalf in a claims case. If nobody was injured and the claim is small, you will normally be able to use the small claims procedure through your local County Court: the local court which deals with small cases and recovers small debts. In most cases you are advised to consult a solicitor if you wish to claim more than £5,000.

Excess
If you are involved in an accident and make a claim, any payout you receive will be subject to excess. The 'excess' is the first part of a claim that you pay yourself. For the average, experienced driver, this can be as little as £50, but for younger drivers it could be as much as £500. The excess dissuades you from claiming on your insurance for every scratch or bump you have, since you pay for the first part of the repair anyway. All insurers require you to pay an excess if you make a claim.