Government task force to investigate rising car insurance costs | Taxes and insurance

Richard Ocock, author
Fri, 01 Nov 2024

The government has set up a task force to help bring down the rising cost of car insurance after figures showed average premiums had risen by more than 20% in just two years.

The rise in car insurance for Britons is much higher than in comparable countries such as Germany, France, Spain and Italy.

Transport Secretary Louise Haigh and Economy Minister Tulip Siddique chaired the first meeting of the working group, which brought together industry groups, consumer advocates and insurance regulators.

Participants included the Association of British Insurers (ABI), Citizens Advice, Which? and Compare the market.

The key goal of the working group is to identify factors contributing to the rapid growth of insurance premiums, as well as agree on solutions to keep them under control.

The Government is particularly concerned about the impact of rising car insurance costs on young people, older people and people from minority ethnic groups or on lower incomes.

“Car insurance is a necessity, not a luxury. It is vital for access to economic opportunity and the government is committed to getting costs under control,” says Hay.

Hague says the government is taking direct action to bring insurers and regulators to the table to discuss how we can tackle rising costs.

“Our new expert working group will give this issue the attention it deserves – tackling the factors driving up costs for the industry and ensuring drivers can get on the road.”

ABI chief executive Hannah Gurga welcomed the taskforce, saying that while average premiums had fallen recently, there should be no loss of momentum in the fight against costs.

All ideas put forward by the working group will be supported by advice from regulators, the FCA and the Competition and Markets Authority (CMA).