Government to take action on rising car insurance costs
The Government have announced that they are to take action to address spiralling car insurance costs for drivers.
Transport Secretary, Louise Haigh, and Economic Secretary to the Treasury, Tulip Siddiq have announced that they will establish a new taskforce made up of representatives from the Association of British Insurers (ABI), Citizens Advice, Which? and Compare the Market, as well as insurance regulators, to tackle spiralling costs of car insurance.
It comes as motor insurance premiums have grown by an average of 21 per cent since June 2022, according to Financial Conduct Authority (FCA) analysis – far higher than in comparable economies such as Germany, France, Spain and Italy.
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Welcoming today’s announcement, DUP MP Carla Lockhart said: “I am pleased that the Government is finally taking steps to address the spiralling costs that drivers face. This has been an ongoing issue in Northern Ireland, where premiums have long been disproportionately high compared to the rest of the UK. This is action that I have been calling for and in February this year the Minister responding to my debate also referenced action from the Financial Conduct Authority.
"The competitive market study launched by the FCA will hopefully see action on premiums but can help ensure people have confidence that the price they pay is fair and competitive. This, allied with the Government's willingness to engage with industry experts and consumer representatives, is a positive step towards finding solutions.
“While the free market largely dictates insurance terms and prices, there is still a role for Government and regulators to ensure that competition functions effectively and that consumers are protected from unfair practices. This engagement must lead to meaningful reforms that will lower costs for drivers, especially those in areas like Northern Ireland, where premiums have become unmanageable for many.
I will remain closely involved in this process, ensuring that the voices of drivers in Northern Ireland are heard and that the Government follows through with measures that will provide genuine relief to motorists. We need swift and effective action to bring premiums down, and I will continue to advocate for fairer outcomes for my constituents.”
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