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MPs 'must drive down premiums'

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MPs from all parties have been urged work together to drive down car insurance costs for motorists.

Louise Ellman, chairwoman for the Transport Select Committee, has warned that many youngsters are being forced to stay off the roads due to expensive premiums.

Speaking to the Commons, the Labour MP pointed out that despite road safety improvements, premiums have managed to rise.

Ms Ellman suggested that claims management firms and fraudsters are to blame for the insurance hikes.

Around £80 is added to the cost of each insurance policy due to staged accidents and fraudsters, she revealed.

"I hope the Government can agree to setting a cross-departmental working party up so that insurance premiums can become affordable and the growing outrage of people forced to pay extortionate rates can be addressed," she said.

Tory Karl McCartney also called for a motoring clampdown on the low fees handed out to uninsured drivers.

He explained that because the fines are nominal compared to car insurance costs, the "getting away with it factor" is too appealing.

Mr McCartney suggested that one way to make uninsured drivers easier to spot would be if it was compulsory to display a valid insurance certificate, or sticker, in the window like the way a tax disc is shown.

Transport Minister Mike Penning also believes uninsured drivers need to be punished, describing them as a plague on police and the general public.

© Press Association 2011