Former Home Secretary Jack Straw has told MP’s that car insurance premiums have reached “extortionate” levels, particularly for people who live in the north west of England.
Mr. Straw, who has been the labour MP for Blackburn since 1979, said that “perfectly law abiding people” in the north west of England are the ones who are badly hit by the insurance costs that have gone through the ceiling. He told the House of Commons Transport Committee that some of the people occupied with the car insurance business were engaging in “bribery” and he described them as “parasites”.
He then started to highlight the “cold calling” that the public was being subjected to. Mr. Straw said that last night he had been contacted via phone and was asked if he had a road mishap in recent times. Then the committee’s chairman, Louise Ellman, Labour MP for Liverpool Riverside said that she too had been contacted via telephone in the morning and was asked the same question about road accidents, “I don’t know how they got hold of my ex-directory phone number,” Mrs. Ellman said.
Mr. Straw was then quoted saying, “Claims management companies are parasitic. In any other walk of life, we would describe this racket by referral companies as bribery. These practices are leading to very substantial (insurance) increases on law-abiding motorists.”
Mrs. Ellman said that even though premiums have been on the rise these couple of years, they appear to be levelling out.
The Justice Minister, Jonathan Djanogly informed the committee that the government has decided to have referral fees banned as this seemed to be “an appropriate” thing to do and it has been “generally welcomed”.
Anyone wished to get a new vehicle should visit a car insurance comparison website to ensure that they get the best possible car insurance quote for their vehicle.