Calls to reduce car insurance costs

09/11/11

By Emma McFarnon

Soaring car insurance premiums are forcing youngsters off the road, while fraudsters add £80 to the cost of insurance, the chairwoman of the Transport Select Committee has said.

Calling for a cross-Government effort to slash the costs of motor insurance, Labour MP Louise Ellman complained that premiums had spiralled despite safety improvements on the roads.

Her Tory counterpart Karl McCartney echoed her cries for action. He demanded that more be done to tackle uninsured drivers, who hike up the cost of insurance for conscientious motorists. He suggested it be compulsory to show a valid insurance sticker or certificate in the window of the vehicle, in the same way a tax disk has to be shown.

He slammed the relatively minor fines imposed on uninsured drivers, accusing them of making the "getting away with it factor too enticing".

Transport Minister Mike Penning agreed that uninsured driving was an enormous burden on constituents and the police.

Ms Ellman told the Commons: "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."

She went on to criticise both fraudsters who stage accidents and claims management companies for the soaring cost of driving.