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Rising insurance costs investigated

  • Insurance investigation planned
  • Average rise of 33% this year
  • Personal injury claims, referral fees probe

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The spiralling cost of car insurance will be the subject of a parliamentary investigation this autumn.

Figures from the AAs British Insurance Premium Index show an average rise of 33.2% this year compared with 2010.

A What Car? investigation in June revealed individual premium increases ranging from 34% to 77%.

The parliamentary Transport Committee has now agreed to look again at these steep rises.

It will investigate an increase in the number of personal injury claims, referral fees paid by solicitors and others, and the role of claims management companies.

Committee chair Louise Ellman MP said: 'Motorists continue to suffer while premiums increase and there is mounting evidence that the insurance industry is part of the problem.

'I will want to hold the insurance industry and the Government to account.'