Former home secretary, Jack Straw, recently said to MPs that some car insurance rates have become so high as to finally break the camel’s back, as they’ve reached virtual extortion.
Blackburn’s Labour MP, Mr Straw remarked that the north-west of England is under siege by car insurance companies that have taken countless honest drivers out behind the woodshed when it comes to motor car insurance. Calling a select few insurers parasitic, Mr Straw said to the Transport Committee for the House of Commons that these insurance providers were more or less ‘engaged in bribery.’
Drawing attention to the kind of invasive ‘cold calling’ that the UK motorist has to suffer through, the former home secretary related a story to MPs how he had recently received a phone call wherein the caller enquired as to whether he had been in an accident any time recently.
Louise Ellman, the chairman of the committee, joined Mr Straw in revealing that she too had been the recipient of a phone call and asked if she’d been in an accident. Mrs Ellman added that she has no idea how these cold callers happened to get their hands on her ex-directory telephone number.
An incensed Mr Straw remarked on the parasitic nature of claims management companies, stating that any other industry would call the actions of referral firms flat-out bribery. He added that it was because of these practices that insurance rate increases have been crippling the nation’s law-abiding and honest drivers.
While premium prices have seemed to have leveled out over the past few months, industry experts have said that price growth is still occurring, just at a slower rate of around 1 to 2 per cent every month. Car insurance industry insiders predicted increases to continue in the coming months.