The government is planning to introduce a new pricing scheme for the storage and removal of damaged vehicles, which could impact on motorists' pockets.
Currently, vehicles are removed on a flat-rate basis, costing the car and
van insurance industry an estimated £50 million a year, Insurance Times reports.
A leaked Home Office document suggests that plans are being considered to introduce a number of fee bands to replace the flat-rate charges.
It is reported that the proposals could cost the insurance industry millions of pounds a year, with a possible £45 increase in price for the removal of each vehicle - costs which could potentially be passed on to UK drivers.
The Home Office claims that it wants to replace outdated pricing structures that have a negative effect on vehicle recovery companies, but concedes that it would have a knock-on effect for the insurance industry.
The announcement follows suggestions from Britannia Rescue that the insurance industry should also provide cover for breakdowns.
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