MP urges action against insurance companies after teenage driver quoted £53,000 for cover

The 18-year-old from Manningham, who has not been named but is believed to have had a driving licence for six months, is now selling her car because she cannot afford the insurance, having been given a lowest quote of £6,000.

Bradford East MP David Ward branded the premiums “ridiculous” in Parliament yesterday as he called for a clampdown on insurance companies selling drivers’ details to personal injury lawyers and driving up premiums.

Mr Cameron said he was “sympathetic” to a ban and said the fees were “driving up the cost of insurance for many people”. He said he hoped to make “progress” on the issue soon.

Mr Ward, who has been inundated with insurance complaints, said: “The situation is completely unsustainable – people simply cannot afford to pay premiums at this level. Motorists will be forced to sell their cars or worse resort to fraud or driving uninsured. Something has to be done.

“Banning referral fees would be a good start and I’m pleased that the Prime Minister has agreed to look at this issue today. The insurance companies are both enriching themselves through these cosy arrangements and the costs are being passed on to ordinary consumers. It is an outrageous racket which has to be stopped.”

The issue ignited recently when former Home Secretary Jack Straw revealed how insurers were getting paid for referring clients’ details to personal injury lawyers without permission.

Last night, the Association of British Insurers admitted the £53,000 quote was a “ridiculous amount of money”, but said young drivers are charged higher premiums because they are more likely to be involved in crashes which can result in injury claims running into millions of pounds. It said it has been calling for the banning of referral fees as part of a wider range of reforms.