Motorists across the UK continue to face sharp increases in car insurance premiums, even as the government claims that average prices are beginning to fall.
The issue was raised in Parliament by Derby South MP Baggy Shanker, who urged ministers to clarify progress in tackling rising insurance costs. Shanker described car insurance as “an essential, not a luxury” and welcomed the formation of a government taskforce to address the problem. Data cited in the House of Commons shows that quoted car insurance prices have risen by an average of 82% since 2021.
In response, Simon Lightwood, a Department for Transport minister, acknowledged the scale of the challenge. He said the government remains committed to fulfilling its manifesto promise to reduce high motor insurance costs. Lightwood also pointed to recent data suggesting that premiums may now be starting to decline on average.
The minister added that a joint taskforce, co-chaired by the Department for Transport and HM Treasury, is examining both short- and long-term policy options. Their work focuses on finding ways to stabilize or lower insurance costs in the future.
Despite these efforts, drivers continue to experience steep increases in renewal quotes and upfront premiums. Experts say several factors are driving costs higher, including more expensive vehicle repairs, rising claims costs, fraud, and the complexity of modern vehicles.
Taxi drivers and other professional drivers have been particularly affected, with annual insurance often reaching several thousand pounds. For many, insurance is now the largest operational cost after fuel and vehicle purchase. Industry observers warn that without intervention, smaller operators may be forced out of business.
Shanker’s concerns echo those raised across different regions and political parties, as pressure mounts to control motoring costs. However, the taskforce has yet to announce firm regulatory changes or caps, leaving drivers waiting for concrete solutions.
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