Statement welcoming the Transport Select Committee’s Report on fraud and the cost of motor insurance

“I welcome the publication of our Committee’s Report, Driving premiums down: fraud and the cost of motor insurance. Fraud and the cost of motor insurance have long been great interests of mine which is why, back in 2011, I authored a report on the subject, Clamping Down on the Menace of Uninsured Drivers.

“Whilst I am pleased that the cost of insurance premiums has fallen, the cost of motor premiums are still too high after previously been driven up by insurers, solicitors and claims management companies who have encouraged people involved in road accidents to claim for personal injury, car hire, and other legal costs. Such actions undermine the justice system - particularly the cases of those who have genuinely suffered from whiplash injuries - and end up dragging innocent people through the courts. It is entirely right, therefore, that we outlaw insurance payouts for whiplash injuries before medical examinations have taken place and I am sure my colleagues in Government will want to very carefully consider doing so.

“My 2011 Report found that the average uninsured driver is fined around a third of the cost of a typical insurance premium. Although the Government has introduced Continuous Insurance Enforcement (CIE) which makes it an offence to simply own an uninsured vehicle, we still need to see much tougher penalties for these individuals if we wish to eradicate the scourge of uninsured vehicles on our roads.”

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For further information, please contact Karl McCartney MP at karl.mccartney.mp@parliament.uk / 020 7219 7221.