John Woodcock MP, Labour’s Shadow Transport Minister, commenting on figures from the AA that show motor insurance premiums rising by 15.3% during 2011, said:
“Once again, we are seeing responsible drivers being squeezed by sky-high car insurance costs, with the average premium now almost at the £1,000 mark. If the Tory-led Government were serious about tackling irresponsible capitalism, they would act to curb the growth in whiplash claims instigated by ambulance-chasing firms which are driving up premiums. Ministers need to get a grip on this issue and incorporate Labour’s proposals on whiplash into their Legal Aid Bill.
“The fact that cheap car insurance deals are drying up is hitting responsible younger drivers hard, pricing many off the roads and out of jobs and education. Labour is urging insurers to offer innovative products, such as drive-to-work-only insurance, to bring down costs, and for government to work with them to make such products possible.”