The UK's biggest insurer has disclosed the impact on every motorist's annual car insurance bill.
The UK's biggest insurer has said whiplash claims add £118 to every motorist's annual car insurance bill.
Aviva said premiums had risen by 80pc since October 2008 due to an increase in personal injury claims, especially whiplash.
The insurer found the average current legal fee for a whiplash claim is £2,500, nearly half of which is due to intermediaries including claims management companies and personal injury lawyers.
Aviva estimated that if insurers handled claims directly it would cut £1.5bn from UK motor insurance premiums.
This cost reduction could lead to premium falls of around £60 a year for the average driver.
Aviva has called to make it a legal requirement on personal injury claimants to contact the 'at fault' insurer first, before going to intermediaries.
The report said whiplash claims had risen by 32pc since 2009, as personal injury claims have risen to 52pc of Aviva’s total claims cost, up from 37pc in 2005.
The Association of Personal Injury Lawyers (APIL) said the proposed changes would leave victims vulnerable.
A spokesman said: "Putting the injured person entirely in the hands of the guilty party’s insurer would create a profound conflict of interest, and leave the victim in an incredibly vulnerable position.
"Independent advice is key to preventing such a conflict and ensuring a fair outcome for the injured person."
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."
Aviva’s report, called ‘Road to Reform: Reducing Motor Premiums by Reforming the Personal Injury Claims Process’, was launched ahead of the Ministry of Justice Whiplash Consultation, which closes on March 8.
The researchers questioned more than 2,000 drivers last December, including 383 who have made a personal injury claim.
Drivers of every age have seen their car insurance costs increase in recent years, with young drivers bearing the brunt of the rises.
According to AA Premium Index, the average comprehensive motor premium is now £789.