The government has established a new taskforce to combat sky-high motor insurance premiums, which have risen by over 20 per cent in the past two years.
Following a pre-election promise to call in industry regulators to fix the spiralling issue of car insurance, the transport secretary, Louise Haigh, has founded the new taskforce with the likes of the Association of British Insurers (ABI), Citizens Advice and the price comparison site Compare the Market.
Working alongside the Department for Transport, the taskforce intends to pinpoint the factors driving up the costs of car insurance and evaluate whether motorists are getting fair value for money.
In a statement, Haigh said car insurance was “essential, not a luxury”. She continued, stating that the “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 news comes as new data from the Financial Conduct Authority shows that the average car insurance premium has risen by 21 per cent since June 2022 – much more than in the likes of France, Germany and Spain. Earlier this year, Citizens Advice told the Transport Select Committee that some people are “having to make impossible choices of whether to pay for their car insurance or put food on the table”.
