Rising cost of motor insurance


The House of Commons Transport Select Committee was taking evidence last week on the rising costs of motor insurance. The committee is looking at both the causes and consequences of this trend, which has seen premiums rising by an average of 40% in the last year.

A number of witnesses giving evidence have attributed the rising costs of motor insurance to 'no win, no fee' solicitors encouraging personal injury claims, and to increasing requests for replacement vehicles and the demand for these to be a 'like for like' replacement.

The next steps will be for the committee to put forward recommendations to government on what steps it could take to reduce the impact of the rising costs of motor insurance.

Source: BVRLA (http://www.bvrla.co.uk/News/Press_Releases.aspx), 15/11/10.

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