Premiums have risen by a staggering 80% since October 2008, according to research by Aviva.

The insurance company said that if claims were handled directly by insurance companies rather than third party intermediaries, including claims management companies and personal injury lawyers, an estimated £1.5bn of excess cost could be stripped from UK motor insurance premiums.

Aviva is calling for all personal injury claimants to contact the ‘at fault’ insurer in the first instance rather than going to or being referred to intermediaries.

Researchers said this would halve the cost per claim as third party legal fees – the average current legal fee is £2500 for a ‘typical’ whiplash claim – are removed from low-value personal injury claims, a saving that will benefit all motorists in reduced premiums.

Dominic Clayden, claims director at Aviva, said: “Our primary concerns are that injured parties receive care and compensation as quickly as possible and that all motorists benefit from a reduction in the excessive costs that have built up in claims over the past few years. We are campaigning for a more efficient system that removes the ‘interested parties’ and requires people to deal directly with the insurer of the at-fault party.”