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%.


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