On April 18 2011 the House of Commons Transport Committee released a report on the cost of motor insurance ” a 128 page report documenting the increases in average quoted premiums for comprehensive car insurance over the last 12 months in the UK.
The report confirmed that the ‘shoparound’ average premium had increased by 39.3% during this period, despite a long term trend towards fewer casualties from road traffic accidents. It went on to explain that these rising costs create problems for UK drivers and thus cause policy problems for the government, who have to deal with uninsured drivers and increased incidence of fraud.
For honest car drivers the outcomes of the report should be favourable, as the Government has tasked the insurance industry with playing an active role in bringing premiums down through a crackdown on fraudulent claims and placing a cap or total ban on referral fees.
A spokesperson from the car insurance comparison site Tiger.co.uk said, “The report is good news for motorists as it has thrown the spotlight on rising costs and challenged the industry to re-think some existing practices that may be inflating premiums. Tighter rules and regulations in these areas will be of benefit to all involved. Whilst this is good news, we would always recommend that drivers shop around to obtain the most affordable car insurance quotes. In the long term this government interest could help prices to stabilise”.
MPs have recommended that the Department for Transport look at international investigations into measures to reduce personal injury claims relating to motoring incidents. However, it is unlikely that this will be of immediate benefit to motorists who are having to cope with rising premiums as the paper is not due to be published until 2012.
About Tiger.co.uk
Tiger.co.uk is a trading name of Call Connection Ltd. Tiger.co.uk is a UK based, independent price comparison site, offering insurance quotes from over 130 motor insurance brands. Call Connection Ltd is authorised and regulated by the Financial Services Authority (number 308374).
Website: http://www.tiger.co.uk/insurance
Email: tiger@tiger.co.uk
Phone: 01473542479
Address: Saxon House
Cromwell Square
City: Ipswich
County/State: Suffolk
Postcode/ZIP: Ip1 1ts
Country: United Kingdom
