Small claims limit in personal injury claims: what it means for you
If you’ve been told your injury claim falls within the ‘small claims limit’, whether by your insurer, your solicitor or the other side’s representative, it can feel like your injury is being brushed aside. It isn’t, but it does change the way it is dealt with.
This limit is a way of sorting claims by value, and it changes how your claim is managed and who pays for what. Understanding the small claims limit puts you in a much better position to decide what to do next.
What is the small claims limit?
Personal injury claims in England and Wales are sorted into ‘tracks’ depending on their value. The small claims track is for the lowest value claims. It is a simpler, less formal process, and each side generally pays their own legal costs.
The term can be confusing, particularly because the rules differ depending on how your accident happened. Being told your claim falls within the small claims limit does not mean you do not have a valid claim. It primarily affects how your claim is dealt with by the court and, importantly, the extent to which you can recover your legal costs from the other side.
For personal injury claims, the limit is largely based on the part of your compensation that covers pain, suffering and loss of amenity (general damages or ‘injury element’ of the claim), in other words, the injury itself. It does not always include things like lost earnings or treatment costs (special damages).
What does the small claims limit apply to?
The current limits are:
- Car vs car accidents: up to £5,000 for the injury element and up to £10,000 overall
- Other personal injury claims, such as cycling accidents or motorbike accidents, workplace injuries, or slips and trips in public places: up to £1,500 for the injury element
There are exceptions to these general rules, so the circumstances of the accident and the type of claimant need to be considered before deciding which rules apply.
Why does it matter?
The biggest factor is legal costs. On a higher value claim such as a serious brain injury (and one on a different track, e.g. fast track, intermediate track and/or multi-track), a solicitor’s reasonable costs can often be recovered from the other side’s insurer if you win. On the small claims track, they generally can’t. That means many firms can’t take on these claims on a no win, no fee basis, because there is no way to be paid for the work.
What about whiplash claims?
For road traffic claims, most whiplash injuries now go through the Official Injury Claim portal. This is a free online service that you can use without a solicitor. Whiplash compensation is set by a fixed tariff, and you can’t settle a whiplash claim without medical evidence. Read more about whiplash claims here.
There are, however, exceptions. The higher £5,000 limit for road traffic claims does not apply to pedestrians, cyclists, motorcyclists and some other vulnerable road users, or to children and protected parties. Those claims usually fall above the lower limit, so more of them are dealt with outside the small claims track.
Does being within the small claims limit mean I cannot use a solicitor?
No. A claim falling within the small claims track does not mean you are prohibited from obtaining legal advice. However, because legal costs are generally not recoverable from the ‘losing party in small claims, it is important to understand how your legal representation is being funded and what you will need to pay, as it usually involves upfront costs.
What to do if you’re told your personal injury claim falls within the small claims limit
- Don’t assume the valuation is right and be aware of early offers. Insurers sometimes undervalue claims. Ask how the figure was worked out, and whether it covers only your injury or your losses too.
- Check whether an exception applies. If you were cycling, walking, on a motorbike, or the injured person is a child, different rules may apply.
- Get medical evidence. A proper medical report is the best way to show how long your symptoms lasted and what caused them.
- Keep records. Save photos, messages, receipts, and details of time off work or travel to appointments. You can claim for losses on top of your injury compensation.
- Watch the time limit. You normally have three years from the date of the accident to bring a claim, whether it’s under the small claims limit or not.
What happens if my injury is worth more than the small claims limit?
If the value of the injury exceeds the relevant small claims threshold, the claim may be dealt with on a different court track.
That can make an important difference to the procedure, costs and evidence required.
However, the value of a personal injury claim is not always straightforward to assess from the outset. The value may depend on the nature and duration of the injury, the medical evidence, whether there are multiple injuries, and whether there are additional financial losses.
It is therefore important not to assume that a claim is a small claim simply because an injury initially appears relatively minor.
Contact our personal injury lawyers
If you’ve been told your personal injury claim is low value and you’re not sure what to do, get in touch. Speak to our personal injury lawyers on 0117 325 2929 or fill out this form and we’ll be in touch.
