The Association of British Insurers (ABI) has revealed that spiralling legal costs are having a detrimental effect on the cost of car insurance premiums for all UK motorists. The news comes after the Office for National Statistics announced that car insurance premiums saw a rise of 6.3% in the month of April alone. The increase in insurance premiums means it is the second fastest growing expense for motorists behind the rising price of fuel. Experts at the ABI explained how growing legal costs are contributing to the increase in insurance premiums. They say that it isn’t down to the fact that insurance companies are paying out more money for personal injury claims, but the money which is spent on the legal costs for these claims which is forcing the cost of premiums to rise. Quoting official government figures, the spokesman from the ABI said, “for personal injury claims under £10,000, for every £1 paid in compensation, a further 76p is paid in legal costs. And the smaller the claim, the more disproportionate these costs are." It’s been estimated these cost which are responsible for increasing the car insurance premiums of all motorists by 10%.