Cardiff, Wales (PRWEB) November 14, 2010
Confused.com has urged the government to work with insurance providers, regulatory bodies and associations including the DVLA in an effort to halt the steep rises in car insurance premiums.
Giving evidence to the Transport Committee Inquiry into the cost of car insurance (http://www.confused.com/) Will Thomas, head of motor at Confused.com, told the committee it was essential the reasons for the prices were tackled with a collaborative approach.
The most recent Confused.com price index revealed premiums have risen 37% since this time last year. Factors such as increasing costs of claims, more injury payouts and increasing fraud have created a situation where many providers are operating at a loss and insurance providers have reacted strongly to move towards a profitable model.
As part of its evidence, the price comparison site proposed a series of steps which it believes could help stabilise the cost of motor insurance prices going forward, including higher deterrents for uninsured drivers; more education and support for young drivers; improved data sharing and a review of the Pass Plus scheme which has started to become less of a desired qualification with some insurers as they don't see the benefit in lowered risk.
Confused.com also laid out what it believes will be the consequences if insurance premiums continue to rise, specifically more uninsured drivers, more underinsurance and more fraud.
Will Thomas, head of motor at Confused.com said: "This enquiry is not before time, with our index showing prices have risen by 37.5% in the last 12 months, with premiums now standing at £650 on average. 17 - 20 year olds have seen prices rise by a massive £616 over the last 12 months.
"Uninsured driving is one of the biggest consequences of the price hike. If insurance providers continue raising their prices then consumers will need an alternative solution or they may be tempted to go without. The consequences of gambling with cover are not worth it. Those struggling to pay for insurance will be unable to afford to repair their vehicle or any vehicle in the event of an accident, which is putting more pressure on struggling insurance companies."
Notes to editors
Full submission available on request.
Confused.com/EMB price index Q3 and accompanying insight also available.
Confused.com is one of the UK's biggest and most popular price comparison services. Launched in 2002, it generates over two million quotes per month. It has expanded its range of comparison products over the last couple of years to include home insurance, travel insurance, pet insurance, van insurance, motorbike insurance, breakdown cover (http://www.confused.com/breakdown-cover ) and energy, as well as financial services products including credit cards, loans, mortgages and life insurance.