- Transport Secretary and Economic Secretary to the Treasury to bring together industry experts, consumer champions and regulators to crack down on spiralling costs of car insurance
- comes as figures show an average 21% rise in premiums in 2 years as new taskforce launched to deliver a fairer deal for drivers
- taskforce to focus on how hardest hit by rising costs, including ethnic minorities, those on lower incomes and elderly and young drivers
Transport Secretary, Louise Haigh, and Economic Secretary to the Treasury, Tulip Siddiq, will bring together industry groups and consumer champions such as the Association of British Insurers, Citizens Advice, Which? and Compare the Market, as well as insurance regulators, to tackle spiralling costs of car insurance today (16 October 2024).
It comes as motor insurance premiums have grown by an average of 21% since June 2022, according to Financial Conduct Authority (FCA) analysis - far higher than in comparable economies such as Germany, France, Spain and Italy - with the government reaffirming its manifesto commitment to act on increasing consumer costs, which stunt the economy and prevent growth.
A new cross-government motor insurance taskforce, supported by industry experts, will also be launched by the Transport Secretary and Economic Secretary to the Treasury today to help drive down the high costs of car insurance.
The taskforce will identify the factors behind rapidly rising premiums and will agree solutions to keep costs under control. Factors driving up the cost of insurance include inflation, rising car thefts and the country's pothole-ridden roads, which the government has pledged to fix with its pledge of filling up to 1 million more potholes every year.
This taskforce is part of the government's manifesto commitment to act on the high cost of insurance for drivers - particularly those who are disproportionately affected by high prices such as young and older people and those from ethnic minority backgrounds or on lower incomes.
Transport Secretary, Louise Haigh, said:
Car insurance is an essential, not a luxury. It is vital to accessing economic opportunities and this government is committed to getting costs under control. That's why we're taking direct action to bring insurance companies and regulators round the table to discuss how we can crack down on spiralling costs.
The rising cost of cover affects all drivers but some groups have been hit harder than others. No matter your background or circumstance, this government is determined to ensure drivers get a fair deal.
Our new expert taskforce is a major step forward in delivering a fair deal for drivers. It will give this issue the attention it deserves - rooting out the factors driving up costs for industry and ensuring drivers are able to hit the road.
The taskforce will bring together expertise from regulators, motoring groups, insurers and consumer groups to find solutions for the high cost of insurance, addressing contributing factors to high costs generally and those that may be disproportionate depending on age or ethnicity.
The taskforce will help support the government's missions to grow the economy and break down the barriers to opportunity, by acting on the cost pressures facing industry and supporting drivers to hit the road.
The expert group will identify the causes of rising costs, assess whether consumers are receiving fair value for money and look at the impact on the groups hit the hardest, using advice from the regulators the FCA and Competition and Markets Authority (CMA).
