Abolition of referral fees 'would cut car insurance costs'

Referral fees should be removed in the car insurance market, it has been said.

Car insurance would be made cheaper in the UK if referral fees were cut, an expert has said.

According to David Ward, MP for Bradford West, such charges should be suspended by the authorities as this course of action would result in annual insurance for vehicles becoming more cost-effective for drivers in the aftermath of the recession.

Mr Clarke explained this would represent a "major step forward", but added that in order for it to work, more needs to be done to ensure an increased number of people are covered.

He added that those who still go without products like car day insurance must then be "dealt with by the police".

Last week (August 9th), AA Insurance revealed it had written to the government to lobby for the inclusion of driving science in the National Curriculum, as this would help reduce premiums for young motorists in the long-term.

However, Mr Clarke concluded: "There's not a single cause of the problems and there won't be a single solution."

By Joe Letts