Ministers will launch a probe into sky-high car insurance costs causing misery for drivers.
Transport Secretary Louise Haigh has ordered a new taskforce to look at spiralling premiums and the impact on those hit hardest, such as low-income families, young drivers and the elderly.
Car insurance premiums have soared an average of 21% since June 2022, according to analysis by the Financial Conduct Authority (FCA) watchdog, outpacing growth in countries like France and Germany. Factors driving up the cost of insurance include inflation, rising car thefts, and pothole-ridden roads.
Ms Haigh has tasked the FCA and the Competition and Markets Authority (CMA) to assess whether consumers are getting value for money after concern that some groups are getting a raw deal. She is understood to be concerned about the postcode lottery some consumers face, with different prices quoted for drivers living only a few streets apart.
READ MORE:
Poorer families, and younger, elderly or ethnic minority drivers appear to be adversely affected. Alongside Economic Secretary Tulip Siddiq, she will also bring together industry and consumer groups such as the Association of British Insurers, Citizens Advice, Which? and Compare the Market today(WEDS) to look for solutions to driving down costs.
Ms 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 spiraling 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.”
Hannah Gurga, Association of British Insurers (ABI) director general, said: "We're aware just how tough the last couple of years have been for motorists and we have been working hard with our members to tackle the cost of claims that impact on premiums.
"While average premiums have fallen recently, there should be no loss of momentum on tackling costs and we look forward to bringing ideas to the taskforce table, building on the 10-point roadmap we released earlier this year."
Insurers argue they are passing on the rise in the cost of claims to consumers, which is driven by soaring prices for parts and labour.
READ MORE:
You may also like
Starlink Sets Its Sights on India: Musk's Vision for Better Connectivity
SCO meeting: Pakistan PM Shehbaz Sharif stays silent on Kashmir
'My son has come back': Murdered fan Renukaswamy's father as grandson born
Alastair Cook, Neetu David And AB De Villiers Inducted Into The ICC Hall Of Fame As Class Of 2024
'Stylish' ankle wellies are 'so comfortable and a godsend in wet weather' - and under £20
Diwali BONANZA! Haryana anganwadi workers salary hike announced ahead of festival
YSRCP leader Sajjala Ramakrishna Reddy summoned for questioning in TDP office attack case
Jagmeet Singh calls for sanctions against Indian diplomats and ban on RSS amid diplomatic row
Ex-Liverpool player names the team to stop Man City - but it's not the Reds
Cabinet approves 3 pc hike in DA of central govt employees
Liverpool's Conor Bradley 'had goosebumps' after setting new Northern Ireland record
Conor McGregor fight date shot down immediately by opponent he called out
UAE: Insurers lost up to more than Dh9 billion in heavy April rains this year
Pakistan calls for expansion of China's Belt and Road Initiative
Rohit Sharma has the responsibility of continuing the reign of 36 years, New Zealand will be tested again.
Remove burn marks from a cooker using 1 simple item - not oven cleaner or vinegar
British influencer dies after falling from 192 meters high Castilla-La Mancha bridge
Why is BCCI preparing to remove Harmanpreet Kaur? 5 big reasons came to light including Team India's defeat.
Every trophy Thomas Tuchel has won as ex-Chelsea boss takes charge of England
Trouble Sleeping? Say Goodbye to Insomnia with These 8 Simple Yet Effective Tips