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Press Release

Press Releases

Labour: Dysfunctional car insurance market is pricing people off the roads & must be investigated - Maria Eagle

Labour press release

Maria Eagle MP, Labour’s Shadow Transport Secretary, responding to the Office of Fair Trading’s provisional decision to refer the private motor insurance market to the Competition Commission, said:

"Motorists will welcome the prospect of an investigation into the car insurance market after years of spiralling premiums.

"The Office of Fair Trading has found worrying evidence that drivers are being taken advantage of by parts of the insurance industry, who are exploiting the lack of control on costs in the market. As a result hard pressed families, who are already facing a cost of living crisis and the effects of a recession made in Downing Street, are seeing insurance premiums being pushed up by £225 million a year.

"Young people are being particularly badly hit by eye watering insurance costs, with average premiums for some 17 to 24 year olds now in excess of £2,400. Pricing young people off the road simply limits their ability to access education, training and employment opportunities.

"Ministers must also play their part in cutting the cost of driving by introducing a temporary emergency cut in VAT which would cut the cost of fuel."

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