Personal injury claims firms 'could push car premiums up by 25%'
Personal injury claims firms were recently found by the Transport Committee to be pushing up the cost of premiums.
Claims director at Swiftcover.com Robin Reames suggests that personal injury companies could in fact be causing prices to increase by as much as a quarter.
The Transport Committee highlighted that referral fees, which are paid to insurance firms by lawyers to gain information of those involved in accidents, are playing a part in rising premiums.
Mr Reames suggests that the government should ban the use of such fees, however, he notes that not all insurers are involved in such practices.
"It's incorrect for the Transport Select Committee to report that the entire insurance industry is tarnished with the same unethical brush, claiming that the industry as a whole sells data to claims firms for financial gain," comments Mr Reames.
Meanwhile, the British Insurance Brokers' Association (BIBA) has also voiced its support for the Transport Committee's findings.
Commenting that the organisation's report echoes many of the points laid out by BIBA to reduce car insurance costs at the close of 2010, it supports the idea that more should be done to tackle personal injury claims, alongside fraud and uninsured driving.
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