Benefits to injured motorists will be slashed under proposed changes to the NSW Green Slip scheme that will reduce benefits for up to 95 per cent of injured drivers.

Lawyers have warned even people with severe injuries, which stop them from doing their jobs, will be forced to rely on welfare or family when their benefits are cut off after five years.

Wagga insurance broker Christine Frankham of Peter Brown and Associates said drivers aged under 25 and over 70 will be the biggest savers. 

“If you're under 25 then you're automatically paying the maximum premium, which in Wagga means you’re paying around $600-odd dollars.

“That cost reduces with age, but once you're over 70 you're back paying around the same as the under-25s.”

Ms Frankham said the common consensus was “ambulance chasers” were too litigious, which was costing insurance providers.

“The savings will come from a more streamlined claims process that doesn't incur lawyer’s fees.”

GIO Insurance general manager Chris McHugh said the proposed changes would increase protection for “a shift worker driving home late at night and is injured in a collision with a kangaroo”.

“Many drivers in regional areas are involved in collisions with animals, particularly at dawn and dusk when visibility is poor,” Mr McHugh said. 

“These reforms will mean that people injured in these accidents will get the support they need.”

Senior Wagga lawyer Tim Abbott said the proposed changes were “dreadful” and would leave blameless crash victims with “virtually no compensation”.

Mr Abbott said the changes were motivated by phantom outcry about the cost of green slips and slammed insurers for pocketing 20 per cent of third-party insurance in pure profit.

Green slip insurers reaped $2.9 billion in profits over the past 15 years. 

“The average punter will save $100 on their green slip and lose most of their benefits,” Mr Abbott said.

“Injured people are about to be completely screwed by the state government.

“If someone’s cleaned up through no fault of their own by a drunk driver who runs a red light, they won’t be entitled to a lump sum and will be drip-fed $400 per week for 130 weeks and then cast aside.”