9 May 2007
A new 150 fee charged by the Home Office for the recovery and storage of stolen vehicles could results in a rise in car insurance premiums.
This new charge is 45 more than the current one, but the Home Office has insisted that the price increase is justified as it will help to avoid cars being dumped on the street.
While the ruling was written with illegally parked vehicles in mind, the legislation is so ambiguously worded that it could apply to vehicles which have been stolen too.
Storage fees will also rise from 12 to 20 inside the M25 and 15 outside of it. If car insurance companies end up paying for the bill because the car was stolen, premiums are near certain to rise.
What is more, the 150 tariff is liable to increase, as under the new rules it will be linked with inflation rates. In addition, plans are in place for major review to occur every three years, which could lead to even more rises.
This means that a driver who is on holiday for a fortnight and has his car stolen on the first day could be forced to pay up to 430 - 150 for recovery and as much as 280 for storage.
Motoring group Safe Speed were quick to criticise the move with founder Paul Smith telling the Evening Standard: "As victims of crime we expect support rather than a bill for our trouble. This is a stealth tax and is unnecessary."
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