RIVERSIDE MP Louise Ellman today demanded further Government action to curb rocketing motor insurance costs.

The transport select committee chairman also wants more action to crack down on fraudulent claims, including staged accidents in Merseyside, which help to drive up prices.

Her move came as the Office of Fair Trading called in insurance industry chiefs to justify average “shop-around” cost increases of 40% in the last year.

In July, Mrs Ellman’s committee complained about insurance companies which refer customers to and from brokers, paying each other fees which are then passed on to motorists.

It also called on the industry to fund special police units to target fraudsters.

Its report said staged accidents are particularly prevalent in Merseyside and the North West.

Mrs Ellman admitted the Government’s response, out today, shows some progress has been made but more needs to be done.

A spokesman for the Department of Transport said: “Improvements in enforcement has seen the number of uninsured drivers fall from 2.2m to 1.4m.

“We will continue to monitor the cost of insurance and its economic impact.”