The Office of Fair Trading (OFT) is going to start looking into the excessive increases in car insurance premiums. This is due to the 9 % increase in insurance coverage costs within the first 9 months of this year (2011).

Back in 2010, there was a noticed increase of 12 % throughout the whole year which has already rendered car insurance policy holders strapped for cash. Car insurance providers have stated that the main reason why premiums have risen in the said year is due to the increase in personal injury claims. It is these personal injury costs that have been driving motorists to darker roads.

The investigation of the Office of Fair Trading will focus on third party claims which include car repairs, parts replacement, provisions for alternative transportation yet do not include injuries.

Liberal democrat MP, David Ward, has initiated a campaign that will focus on high car insurance costs and their disadvantages to policy holders. With the investigation of the OFT finally commenced, he promised that a House of Commons Transportation committee will soon follow.

There were more than one thousand respondents who took part in the recent survey initiated by MP David Ward. It was through this survey that annual car insurance premiums were compared. Through this survey, it was disclosed that an average of 63 % was increased on their car insurance premium.

Having seen this staggering percentage in increases MP David Ward decided to commence an online petition which will hopefully urge the Parliament to make an action in creating more affordable car insurance rates. Also, a call for stricter penalties involving uninsured drivers is also prioritized.

InBradford, the premiums are excessively high because this is one of the hotspots for bogus accidents. Due to this, insurance experts fear thatYorkshiremight become a place full of uninsured drivers. In between the months of April and June alone of this year, there has been an increase of 3 % in premiums.

The MP forBradfordhas expressed his delight in the OFT and their commitment to help solve this social issue. As he has mentioned, “This here is a difficult situation and every factor needs to be taken into consideration. If not, it might be possible thatYorkshirewill never see cheaper car insurance rates. In relation to this, the Office of Fair Trading needs to make sure that this kind of behavior is permanently removed. This is to ensure that motorists will be able to get a fair price for their car insurance coverage.”