The Association of British Insurers (ABI) has warned that motor premiums will continue to soar unless serious action is taken to cut the cost of rising personal injury claims.

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Drivers are now paying an average of £892.08 to insure their car compared with £633.55 12 months ago, according to an analysis of more than 2,500 premiums.

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Personal injury lawyers will cut the number of conditional fee agreements they offer to clients as a direct result of the civil justice funding reforms announced by the government last week.

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The Jackson review includes draconian proposals that will affect compensation for people with complex insurance claims

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Excluding claims by financial institutions from compulsory professional indemnity insurance (PII) cover will harm consumers and smaller law firms, cut access to justice and do little to reduce conveyancing claims, the Law Society has said.

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