Government urged to halt rise in car insurance premiums

Thu, 11 Nov 2010

The government has been urged to work with insurance providers, regulatory bodies and associations in an effort to halt the steep rises in car insurance premiums .

Will Thomas, head of motor at Confused.com, told an inquiry into the cost of motor insurance that it was essential the reasons for the prices were tackled with a collaborative approach.

Car insurance premiums have risen 37 per cent since this time last year, according to the latest index by confused.com.

Indeed, many car insurance providers are operating at a loss because of the increasing costs of claims, more injury payouts and increasing fraud .

"Uninsured driving is one of the biggest consequences of the price hike," Mr Thomas warned.

" Price comparison goes some way to keeping the costs down by providing a clear and transparent market place but this alone can't solve the problem."

Duncan Anderson, of EMB Consultancy, claimed recently that Britons could face double digit price hikes in car insurance premiums for the foreseeable future. 
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