MPs drive to lower car insurance

Soaring premiums and fraudsters staging car accidents were among the reasons MPs said the cost of motor insurance is increasing.

At a Transport Select Committee meeting to discuss ways to cut costs of motor insurance, Labour MP Louise Ellman said despite improvements to roads, premiums had still increased and that management companies were a factor in increasing the cost of running a car.

She said criminals who staged car accidents added around £80 to the cost ofcar insurance.

She added: "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."

Uninsured drivers were described as a plague on communities and their police forces by Mike Penning the Transport Minister.

Tory MP Karl McCartney said bigger fines should be put in place to tackle uninsured drivers and he called for making it compulsory to have a valid insurance notice in car windows, similar to how tax disks are displayed.

Copyright © Press Association 2011