News & Features

Government Attempts to Halt the Rise of Car Insurance Costs

Posted in General News on Monday, October 21st, 2024

Last week the Transport Secretary, Louise Haigh, and Economic Secretary to the Treasury, Tulip Siddiq, brought together industry groups and consumer champions such as the Association of British Insurers (ABI), Citizens Advice, Which? and Compare the Market, as well as insurance regulators, to tackle the increasing costs of car insurance for motorists 

It comes as motor insurance premiums have grown by an average of 21% since June 2022, according to analysis by the Financial Conduct Authority. This is higher than in comparable economies such as those of Germany, France and Spain – 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 to help reduce the 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 growing pothole problem. 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...” 

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