Labour will end car insurance rip-offs where drivers in some areas pay more
If Labour comes into power, they will put an end to the unfair practices in car insurance that result in drivers in certain areas facing exorbitant premiums.
Shadow Transport Secretary Louise Haigh pledged to ensure motorists are not paying over the odds to insure their vehicles. She also promised to take on petrol forecourts that fail to pass on reductions in the price of fuel to drivers.
Car insurance costs have soared by an average of almost 50% over the past year, with premiums at their highest level since 2018. In her party conference speech, Ms Haigh announced she would order the Competition and Markets Authority and Financial Conduct Authority to launch formal investigations into the soaring prices. The watchdogs will look at hidden costs, including set-up fees that now add an average of £40 to bills.
They will also examine the use of unfair postcode pricing as there are concerns that those who live in less affluent areas or places with a more ethnically diverse population are paying more than they should for the premiums. It has been warned that differences in pricing go beyond typical risk factors of crime rate and road traffic accidents.
Ms Haigh also wants to extend the existing 14-day penalty-free cancellation period for car insurance. If Labour gets into power, she has said she will also establish a tough new fuel watchdog to monitor prices at the pumps.
Ms Haigh said: “Last week the Conservatives exposed just how out of touch they are with the reality facing drivers up and down the country. Instead of supporting drivers through the cost-of-living crisis, Rishi Sunak was reduced to parroting bizarre conspiracy theories. It is clear he has nothing left in the tank.
“Labour will tackle the real concerns of drivers with a laser-like focus on the cost of living. Our plan means action on unfair petrol and car insurance costs, removing barriers so infrastructure improvements are actually delivered, reducing the traffic clogging up our roads and boosting the charge-point rollout.”
