Committee hears evidence on rate increases
Biba has called on the Government to implement an eight point plan to reduce the spiralling cost of motor insurance.
Biba head of corporate affairs Graeme Trudgill told today’s House of Commons transport select committee hearing into the cost of motor insurance that the market for insuring drivers had not failed.
He added that signposting customers, particularly young drivers, to a source of help was a vital part of the solution to access affordable insurance.
Trudgill said: “We think the key priorities for the government should be to introduce continuous insurance enforcement, implement changes to reduce the cost of bodily injury claims and importantly signpost customers to a source of help.”
“Signposting is an important solution at no cost to Government. There are key benefits to consumers, particularly those in the more vulnerable age groups. This will help more people find insurance, meaning fewer are left uninsured and unprotected.”
Biba submitted an eight point plan to the committee which it believes will help to tackle the increasing cost of insurance. The eight point plan recommends that the government should:
- Introduce Continuous Insurance Enforcement
- Signpost people to a relevant broker where they can find competitive cover (particularly young or non-standard drivers)
- Regulate comparison sites to the appropriate standard
- Review Pass Plus
- Review the driving test
- Engage with Lord Justice Jackson’s review of civil litigation costs
- Delay the increase to insurance premium tax
- Give insurers access to driving licence records
Biba’s response says the recent increase in the cost of motor insurance is driven by claims inflation, insurers' reduced investment income, uninsured driving and fraudulent claims.
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