Labour says industry 'taking advantage' of drivers

Labour shadow transport secretary Maria Eagle has hit out at the insurance industry in a response to the Office of Fair Trading’s (OFT’s) provisional decision to refer the private motor insurance market to the Competition Commission.

Eagle said: “The Office of Fair Trading has found worrying evidence that drivers are being taken advantage of by parts of the insurance industry, who are exploiting the lack of control on costs in the market.

“As a result hard-pressed families, who are already facing a cost of living crisis and the effects of a recession made in Downing Street, are seeing insurance premiums being pushed up by £225 million a year.”

The cost of motor insurance was worst for drivers aged 17 to 24, Eagle added.

She said: “Pricing young people off the road simply limits their ability to access education, training and employment opportunities. Ministers must also play their part in cutting the cost of driving by introducing a temporary emergency cut in VAT which would cut the cost of fuel.”