Inquiry into cost of motor insurance reopened

Date: 1/7/2011

The price of vehicle insurance is a subject that is to be readdressed by the Transport Committee.

As premiums continue to increase in the UK, the resulting concerns about this prompted the group to reopen talks about the issue, with Labour MP Jack Straw called as a witness.

He will give oral evidence after publishing a paper on the subject of increasingly expensive insurance policies.

The Committee notes that many of the points contained within this document are also featured in its own report, which was published on March 1st.

Among these are the acknowledgement that personal injury demands following vehicle accidents have gone up and questions over the role played by claims management companies.

Committee Chair Louise Ellman says Mr Straw's paper is a "powerful contribution" in this debate and that she wants to hold the insurance industry to account over the issues raised.

"Motorists continue to suffer as premiums increase and there is mounting evidence that the insurance industry itself is part of the problem," she adds.

According to the Transport Committee's report, the rising cost of motor cover is having an adverse effect on the lives of people who depend on their vehicles to get from place to place.

Posted by Mary Treen