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Plymouth solicitors Gard & Co. do not pay referral fees for personal injury claims
MPs have criticised insurance firms for encouraging personal injury claims by ‘selling’ names of people involved in car accidents to lawyers. The lawyer pays the insurance company a referral fee for the details of a person involved in an accident so they can be encouraged to sue for compensation.
The same practice is undertaken by nationally advertised accident help lines which are often merely a referral agency. They take potential claimants’ details and then sell them to firms of solicitors.
This practice not only increases the number of potentially unsuccessful or fraudulent claims but also boosts the total legal cost. With nearly all legal costs being met through insurance this has led to wide ranging increases in car insurance premiums.
The AA's British Insurance Premium Index revealed that the average ‘Shoparound’ premium - an average of the lowest three quotes for each risk - increased by 33% over 2010.
Gard & Co. have a strict policy not to pay referral fees. We do not pay for personal injury work, commercial work or conveyancing work. We do not pay referral fees for any work. We have long held the view that paying referral fees can only lead to escalating costs which, ultimately, have to be met by the client, either through an enhanced fee or increased insurance costs.
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