Insurance bodies in the UK will meet with ministers and the Transport Secretary later today to crack down on the “spiralling” costs of car insurance which has seen some motorists pay thousands of pounds a year.
Transport Secretary Louise Haigh and Economic Secretary to the Treasury Tulip Siddiq will announce that a new motor insurance task force will be created.
The Department for Transport has outlined that certain factors are forcing insurance premiums higher, including the rate of inflation and the car theft epidemic.
According to the latest data from Confused.com, the average price for car insurance coverage is £861 per year. This is a slight drop compared to the £995 average cost seen at the end of 2023.
Transport Secretary Louise Haigh, who represents Sheffield Heeley, said the new task force would be a “major step forward in delivering a fair deal for drivers”.
She added: “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.”
Labour’s election manifesto pledged to further support drivers by tackling the soaring cost of car insurance as part of its automotive sector plan.
It reported that car insurance prices have soared by over £200 in just two years, with an estimated one million people cancelling their insurance due to the cost of living crisis in 2022.
Labour said it would call on the Competition and Markets Authority (CMA) and the Financial Conduct Authority (FCA) to launch urgent investigations into the high prices.
Source-GBN
