MP in plea over car insurance costs
Discussion
A cross-Government effort is required to drive down the costs of motor insurance, the chairwoman of the Transport Select Committee has urged.
Louise Ellman said many young drivers were being forced off the road as a result of soaring premiums.
The Labour MP told the Commons that premiums had risen despite safety improvements on the roads and blamed fraudsters and claims management companies for the increased cost of motoring.
She said: “I hope the Government can agree to setting a cross-departmental working party up so that insurance premiums can become affordable and the growing outrage of people forced to pay extortionate rates can be addressed.”
Mrs Ellman said: “The AA’s regular survey of the cost of motor insurance shows that quoted premiums have more than doubled since 2006 to reach an average of £921 last week.
If we look at the premiums faced by young people, particularly young males, the costs are significantly higher, in many cases around £3,000.”
he continued: “It is remarkable that the rapid increase in premiums has coincided with significant improvements in road safety and a very welcome trend where the numbers of deaths and serious injuries on the road have come down.”
Claims management companies “encourage people to claim and make multiple claims” and warned that firms “may try to get round the abolition of referral fees” announced by the Government.
Fraudsters and criminal gangs staging accidents added around £80 to the cost of insurance, she added.
Karl McCartney, Conservative MP for Lincoln, demanded action to tackle uninsured drivers, where the relatively low fines imposed compared to the cost of insurance made the “getting away with it factor too enticing”.
Louise Ellman said many young drivers were being forced off the road as a result of soaring premiums.
The Labour MP told the Commons that premiums had risen despite safety improvements on the roads and blamed fraudsters and claims management companies for the increased cost of motoring.
She said: “I hope the Government can agree to setting a cross-departmental working party up so that insurance premiums can become affordable and the growing outrage of people forced to pay extortionate rates can be addressed.”
Mrs Ellman said: “The AA’s regular survey of the cost of motor insurance shows that quoted premiums have more than doubled since 2006 to reach an average of £921 last week.
If we look at the premiums faced by young people, particularly young males, the costs are significantly higher, in many cases around £3,000.”
he continued: “It is remarkable that the rapid increase in premiums has coincided with significant improvements in road safety and a very welcome trend where the numbers of deaths and serious injuries on the road have come down.”
Claims management companies “encourage people to claim and make multiple claims” and warned that firms “may try to get round the abolition of referral fees” announced by the Government.
Fraudsters and criminal gangs staging accidents added around £80 to the cost of insurance, she added.
Karl McCartney, Conservative MP for Lincoln, demanded action to tackle uninsured drivers, where the relatively low fines imposed compared to the cost of insurance made the “getting away with it factor too enticing”.
RESSE said:
A cross-Government effort is required to drive down the costs of motor insurance, the chairwoman of the Transport Select Committee has urged.
Louise Ellman said many young drivers were being forced off the road as a result of soaring premiums.
The Labour MP told the Commons that premiums had risen despite safety improvements on the roads and blamed fraudsters and claims management companies for the increased cost of motoring.
She said: “I hope the Government can agree to setting a cross-departmental working party up so that insurance premiums can become affordable and the growing outrage of people forced to pay extortionate rates can be addressed.”
Mrs Ellman said: “The AA’s regular survey of the cost of motor insurance shows that quoted premiums have more than doubled since 2006 to reach an average of £921 last week.
If we look at the premiums faced by young people, particularly young males, the costs are significantly higher, in many cases around £3,000.”
he continued: “It is remarkable that the rapid increase in premiums has coincided with significant improvements in road safety and a very welcome trend where the numbers of deaths and serious injuries on the road have come down.”
Claims management companies “encourage people to claim and make multiple claims” and warned that firms “may try to get round the abolition of referral fees” announced by the Government.
Fraudsters and criminal gangs staging accidents added around £80 to the cost of insurance, she added.
Karl McCartney, Conservative MP for Lincoln, demanded action to tackle uninsured drivers, where the relatively low fines imposed compared to the cost of insurance made the “getting away with it factor too enticing”.
I'd be more impressed if the government started to lower fuel duty rather than increasing their share yearly.Louise Ellman said many young drivers were being forced off the road as a result of soaring premiums.
The Labour MP told the Commons that premiums had risen despite safety improvements on the roads and blamed fraudsters and claims management companies for the increased cost of motoring.
She said: “I hope the Government can agree to setting a cross-departmental working party up so that insurance premiums can become affordable and the growing outrage of people forced to pay extortionate rates can be addressed.”
Mrs Ellman said: “The AA’s regular survey of the cost of motor insurance shows that quoted premiums have more than doubled since 2006 to reach an average of £921 last week.
If we look at the premiums faced by young people, particularly young males, the costs are significantly higher, in many cases around £3,000.”
he continued: “It is remarkable that the rapid increase in premiums has coincided with significant improvements in road safety and a very welcome trend where the numbers of deaths and serious injuries on the road have come down.”
Claims management companies “encourage people to claim and make multiple claims” and warned that firms “may try to get round the abolition of referral fees” announced by the Government.
Fraudsters and criminal gangs staging accidents added around £80 to the cost of insurance, she added.
Karl McCartney, Conservative MP for Lincoln, demanded action to tackle uninsured drivers, where the relatively low fines imposed compared to the cost of insurance made the “getting away with it factor too enticing”.
More and more people are being convicted of driving without insurance due to the increase in police use of ANPR systems. 6 points and £200 at the roadside or possibly more in court is not exactly a light deterrent. Get caught twice and it's bye bye licence (or once if you are a new driver).
Seems just like a poor attempt at making it look like they are doing something to help the motorist when infact they aren't.
I have a feeling that insurance companies are jumping on the bandwagon, a friend of mine (59, no points driving for 40 years) purchased a new transit 8 years ago, he hunted around for fully comp at the start and secured £400 after getting quotes up to £1,000, during the eight years cost has slowly risen to £650 but this year a 27% increase to £830, so hunts around again and gets a quote for £330, work that one out!
sussexjob said:
I have a feeling that insurance companies are jumping on the bandwagon, a friend of mine (59, no points driving for 40 years) purchased a new transit 8 years ago, he hunted around for fully comp at the start and secured £400 after getting quotes up to £1,000, during the eight years cost has slowly risen to £650 but this year a 27% increase to £830, so hunts around again and gets a quote for £330, work that one out!
Loss leading. Cheap quote in the first year, hoping you are one of the many 1000's that will stick with the same company every year. Its the reason I pay less to insure my Lotus, than my Mother and FIL pay for a rover 214, and Kia Rio respectively.My first year with A Flux was around the £300 mark, the second year quote was £450 (50% increase). A bit of shopping around and I got it for £300 again. I need to change insurance co's every 1or 2 years, but it keeps the cost reasonable.
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