Car Insurance Firms Are The Cause Of Increasing Insurance Premiums

Car insurance firms are causing insurance premiums to rise by fostering a “compensation culture” according to MPs. An investigation by the Transport Select Committee has found that insurance firms are paid referral fees for giving lawyers the details of people involved in accidents.

Insuring a vehicle is already expensive but the increasing number of injury claims year on year serves to raise prices. A situation where an insurance company encourages litigation is not only self serving but also could result in people staging crashes in order to make false claims.

The Transport Select Committee found that more than 40.0% of personal injury lawyers paid insurers or claims management firms to find more work for them.

Louis Ellman, the Transport Select Committee’s chairman argued that the public should be made aware of the money moving round the insurance industry when a claim is made.

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