Greedy car insurance firms ripping drivers off by £157 thanks to hidden fees & subscription traps
BRITISH motorists are being ripped off to the tune of £157, new analysis shows.
MPs today warned that greedy car insurance firms are being given the green light to swindle motorists.
The average cost for comprehensive motor insurance in the UK was about 33 per cent higher – or £157 more – in the first quarter of this year compared to last.
Analysis from Labour shows that one in five drivers currently let their auto-renew without comparing offers, meaning millions could be losing money to subscription traps each year.
At the same time drivers are unwittingly being hit with hidden fees, which are on the rise.
Almost half of standard car insurance policies now include a set-up fee, compared with just 21 per cent five years ago.
The Financial Conduct Authority has warned that many firms are failing to provide good value for customers, with pay-outs at unfairly low rates.
But the watchdog is yet to launch a probe into new soaring costs or demand clarity around price increases.
In the Commons today Shadow Transport Secretary Louise Haigh will demand ministers block insurance fat cats charging hard-up drivers exorbitant prices.
In a letter to Transport Secretary Mark Harper, seen by The Sun, she said: “These rip-off costs are quickly becoming a national scandal.
“Yet your Government has not only completely failed to act as drivers face increasingly exorbitant car insurance prices, it has actively contributed to the rising costs as well.”
Labour insisted it will work with consumer groups and industry to “identify the best ways to crack down on rip off practices”.
But the party was light on detail, only specifying that “this will include increasing transparency around auto renewals and clamping down on hidden fees”.