Car insurance is an essential for millions up and down the country.
It’s not just a legal requirement, but something that protects all of us on the road. Yet, in recent years, millions of responsible drivers have seen a hike in premiums far outstripping rises seen in other countries.
It’s led to Citizens Advice warning of increasing numbers being driven to sell their cars or make painful cuts to household budgets elsewhere. It’s a choice no-one should be forced to make.
That’s why this Government stood on a manifesto commitment to tackle the rising cost of car insurance. We promised to back drivers and today, we’re making good on that promise.
This afternoon, the Economic Secretary to the Treasury and I will bring together industry experts and consumer champions with a simple aim: to reduce high premiums and get drivers a fair deal.
This new taskforce includes consumer champions such as Which? and Citizens Advice, representatives from the insurance, price comparison and car industries, as well as regulators.
After all, there are tough questions that need to be asked. Like why British drivers are facing higher costs than others in Europe?
And why are certain groups, particularly ethnic minorities or those on low incomes, reported to get higher quotes? Together, we’ll help strike that important balance for drivers: affordable insurance that still offers the right protection.
I know insurance is a complex market, with many factors affecting prices. But this Government was elected to serve working people, and fix parts of the economy that had stopped working for them.
That’s why we’re determined to take action. Because owning a car for most people is a lifeline, not a luxury.
When people are priced out of driving it risks holding them back from accessing work or medical services; visiting family and friends; or even being able to drop the kids to school.
It means harder times for families already struggling to get by. I won’t let that happen. That’s why delivering a fair deal for drivers is central to this Government’s mission to grow the economy and create opportunities for everyone, wherever they live.