UK ministers pledge crackdown on rising car insurance costs

finance
Created 10/16/2024
Updated 10/16/2024

UK ministers have pledged to address the sharp rise in car insurance premiums, which have increased by 21% since June 2022. Transport Secretary Louise Haigh and Treasury Secretary Tulip Siddiq have formed a task force, involving regulators, industry leaders, and consumer groups, to find solutions for controlling these "spiralling" costs. Factors like inflation, rising car thefts, and damaged roads have driven premiums higher. The Financial Conduct Authority (FCA) is also investigating whether consumers are being overcharged when paying insurance in instalments, a practice affecting many in financial hardship. Insurance companies argue that increasing claims costs are behind the price hikes and are seeking collaborative solutions with the government.

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