The UK’s new Transport Secretary, Louise Haigh, is set to roll out a plan aimed at clamping down high motor insurance costs in the country.
Haigh, who in July promised to deliver a major transport overhaul, will soon be revealing a motor insurance costs crackdown, according to The Mail on Sunday.
Pointing a finger at the previous government, she told the publication: “Under them, the cost of cover soared due to unfair practices, surging inflation, pothole-ridden roads, and rising car thefts.”
It was reported that Haigh is determined to act on the issue of affordability, particularly among new and elderly motorists – two ends of the spectrum often significantly impacted by rising car insurance prices.
In April, the Association of British Insurers (ABI) noted that the average comprehensive car insurance premium in the first quarter of 2024 stood at £635. At the time, premiums were described as stabilising, having increased by 1% from the fourth quarter of 2023.
“We understand that car insurance costs are putting pressure on household finances,” ABI general insurance policy director Mervyn Skeet stated earlier this year. “These figures show how competitive the motor market is, with insurers absorbing significant cost rises but keeping prices relatively stable.
“Even though these figures demonstrate a slowdown in price increases, we won’t be taking our foot off the gas when it comes to our work on tackling the cost of cover.”
The new government, meanwhile, is taking action based on last year’s premium hikes.
Haigh told The Mail on Sunday: “Car insurance isn’t a luxury – it’s a legal requirement and an essential for millions.”
Last month, the Transport Secretary set out five strategic priorities, including driving forward rail reform, improving bus services, and delivering greener transport.
“It will take all our effort, but the new motto of our department – our purpose – is simple: move fast and fix things,” she declared then. “Our department is so clearly central to achieving the missions for government that the Prime Minister has committed us to.”
What do you think about this story? Share your thoughts in the comments below.
