A series of test cases start next week in which the outcomes could send motor insurance premiums rising by up to 10%.
The cases have been triggered by a 1998 report by the Law Commission
recommending general damages should be increased by at least twice their current rate.
Analysts are forecasting £500 million a year in claims costs for the motor market, which will also mean £1 billion of backlog claims.
Commercial liability premiums may also see a rise of 20-30%.