Government says average car insurance premiums are now beginning to fall, but drivers still seek answers on soaring costs since 2021
- Perry Richardson
- Sep 14
- 2 min read
Updated: Sep 15
Motorists continue to face sharp rises in car insurance despite government claims that average premiums are starting to fall.
The issue was raised in Parliament this week by Derby South MP Baggy Shanker, who urged ministers to explain what progress is being made to tackle the cost pressures affecting drivers across the country.
Shanker described car insurance as “an essential, not a luxury” and welcomed the formation of a taskforce to address the problem. According to data referenced in the House of Commons, quoted prices for car insurance have increased by an average of 82% since 2021.
Responding to the concern, Simon Lightwood, a Department for Transport minister, acknowledged the scale of the challenge. He said the Government remains committed to delivering on its manifesto promise to tackle high motor insurance costs. Lightwood pointed to recent data that, he claimed, suggests premiums are now beginning to decline on average.
The minister said a joint taskforce, co-chaired by the Department for Transport and HM Treasury, continues to explore both short- and long-term policy options. The work includes identifying what steps could be taken to stabilise or reduce insurance costs in the future.
Drivers across the UK are still battling sharp increases in their renewal quotes and upfront premiums since 2021. Industry experts say a range of factors have pushed prices upwards, including more expensive vehicle repairs, higher costs of claims, fraud, and the growing complexity of modern vehicles.
Taxi drivers, in particular, have seen some of the largest hikes, with insurance often running into several thousands of pounds annually. For some, it has become the biggest operational cost after vehicle purchase and fuel. There is growing concern among professional drivers that without intervention, more small operators may be forced out of the trade entirely.
Shanker’s intervention follows similar concerns raised across different regions and political parties, as the pressure to control motoring costs continues to build. There remains limited detail about the measures being considered by the taskforce, and no firm commitments have yet been made on regulatory changes or caps.
Minister Lightwood said: “This Government committed in our manifesto to tackle the high cost of motor insurance, and I am pleased to see recent data suggesting that average premiums are falling. The Government’s taskforce, chaired by the Department for Transport and His Majesty’s Treasury, continues to work to identify short and long- term policy actions that may contribute to stabilising or reducing premiums.”
