|
|
|
|
Car Insurance News
Motoring and car insurance news
from our dedicated news team
Providing
background, context and analysis
on major news stories

|
|
|
|
Yorkshire MP becomes latest car
insurance activist
11 Aug 2011
by Emma Jamieson
Only three months ago, Birmingham
Labour MP Roger Godsiff accused car
insurance companies of "milking
motorists" via excessive premiums for young drivers.
More recently, Jack Straw, the best-informed MP on the issue, has
called for reforms in car insurance
having called the payment of referral fees to car insurance companies "a racket". Straw has
also tabled a ten minute rule debate on car
insurance reform.
The Prime Minister has declared the Government "sympathetic" to a
referral fees ban, an issue that the Transport Select
Committee proposes to re-examine, while the current Legal Aid, Sentencing and Punishment of
Offenders Bill aims to reduce legal costs in
litigation including in car insurance injury claims, among numerous
other judicial reforms.
Lib
Dem Yorkshire MP, David Ward (pictured), has now entered the debate
after a 20-year-old driver in his constituency was quoted £53,000
for car insurance, according to a report in the Yorkshire Post. That
the young driver was female makes the quote even more remarkable, given
that car insurance for young female drivers is currently cheaper than
that for young men although this gender difference will cease at the
end of next year owing to the ECJ gender
ruling.
The Bradford East MP has tabled a motion to raise the issue in
Parliament and has encouraged the public to sign his online petition
for cheaper car insurance, which will be presented to the Department of
Justice.
Mr Ward stated that he had been "inundated" with correspondence from
Bradford residents who had seen car insurance premiums, even for
drivers without a claim for 30 years, "go through the roof".
Bradford is one of the most expensive car insurance postcodes in the
country, partly because it has the highest incidence of cash-for-crash
fraud.
Ward comments: "I’m asking everyone affected by this issue across the
country to sign the online petition to help me pressure the Government
into tackling the problem."
He adds: "If everyone who cares about this issue signs the petition,
the Government will be forced to act." A Government of which he, as a
Lib Dem, is a part.
The petition, welcomed by the Association of British Insurers (ABI),
can be found at: http://epetitions.direct.gov.uk/petitions/354
In commenting on Mr Ward's campaign, an ABI spokesman, as well as
pointing out that premiums are calculated according to risk, said: "We
want the Government to change the way people learn to drive... [so
that]... people get to drive at night or in different conditions to
make sure [that] when they get behind the wheel on their own they are
safe and confident." If young driver risk can be reduced by acquiring
better driving skills, then this would help to reduce the
cost of car insurance for young drivers.
The ABI spokesman also said that major insurers, (such as the Co-op)
now provide pay-as-you-drive
telematics car insurance where driving style is monitored by an
on-board 'black box' and safe drivers are rewarded with lower premiums.
There is no doubt
that Jack Straw in particular has forced the issue of over-expensive
car insurance into the political forefront and this has forced the
Government and the Transport Committee to raise their game, as well as
more publically debate the issues.
That
another politician has entered the fray, with the liklihood that more
will follow, is to be welcomed by motorists that are increasingly of a
view that the Government is not doing enough to help them to reduce
their motoring costs.
The
high cost of car insurance is not an issue that the Government will be
allowed to sideline or delay as it is becoming all too clear that the
need for reform is pressing.
|
back to
top
car
insurance supermarket
Copyright
© car insurance uk supermarket
|
|
|
|
|
| Media
Centre |
press releases,
research reports, industry analyses, article series, monthly news
briefs, blog and comment, buyers' guide
|
| Go >
|
|
|