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Womens Car Insurance Article |
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Government proposals could cause insurance problems
June 4 04
Car insurance premiums could be set to surge as the result of a Government proposal.
The AA claims that Labour's plan to charge drivers every time the Fire Service attends road traffic accidents could precipitate a significant increase in the social costs of such premiums.
A consultation paper, recently published by the office of the Deputy Prime Minister, claims that fire and rescue authorities should benefit from a charge for their efforts, as they do not make a profit.
However, Neale Phillips, director of Insurance Services at the AA, claims: "Our concern is that strengthening of the law will mean adding to the overhead costs already imposed on motorists through their insurance premiums, which currently amount to an average of £65. 2.
"These are significant costs that penalise law-abiding motorists simply for driving on the public highway. We don't believe there is any justification for adding what could amount to a further £5 per policy on top of the financial burden already suffered by drivers.
"Indeed, we believe these costs contribute towards the rising number of uninsured drivers."
Consultation on the paper, which was published in February, closed this week, with the AA Motoring Trust having made representations to the Office of the Deputy Prime Minister.
© DeHavilland Information Services plc, 1998-2003
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