THE European Parliament has approved legislation that will give victims of motor accidents the right to claim legal costs in their home countries when they have accidents in other EU Member States.

Under the current system, claimants have to deal with two different legal systems leading to delays, complications and extra costs when trying to claim back legal expenses.

A deal has been struck by the Council of national ministers and the Parliament - the two branches of the EU legislature - that will mean victims are able to bring proceedings against the other party’s insurance representatives directly in their home country, doing away with the need for two sets of lawyers and foreign legal proceedings.

The EU Commission has also agreed to look into making insurance companies provide automatic coverage for legal costs involved in accidents abroad, such cover is already offered optionally by many insurers at a cost of £10 to £15 a year.

The European Parliament passed the legislation this week with the new provisions. Speaking after the vote, Chris Huhne MEP, the European Liberal Democrat (ALDE) economic spokesman welcomed the new directive.

He said: "Nobody who suffers a motor accident in the EU should have to face huge amounts of bureaucracy and be drawn into two different legal jurisdictions, one of which is entirely foreign to them.

"As citizens as well as consumers in a single market, it is only reasonable that motorists should have a simple procedure for cross-border legal proceedings. This is a big step forward for freedom of movement in Europe."