Insurance companies are quick to blame almost anyone they can for the rising cost of insurance premiums. Anything from fraudulent claims to rip-off repairers are lined up to take the rap, but it appears that in the UK at least part of the problems is self inflicted.

An investigation by the UK newspaper the Daily Telegraph has found that every driver is  paying an inflated price for insurance because insurers have a system of secret deals and kick backs that see repair costs inflated.

The investigation found that in cases where the insurance company the driver was insuring was not at fault, repair costs were routinely inflated sometimes doubling the repair bill. The insurance company of the at fault driver is left to pick up the bill, while the other insurer gets a financial kickback. It is thought the practice could cost some £750m per year. 

The Telegraph says that this effectively creates a totally unnecessary hidden layer of cost for drivers that could be adding as much as 5% to every ones annual premium and causing the upward pressure on insurance costs.