Home Page About Us Contribute

Escort, Inc.

Tweets by @CrittendenAuto

By accessing/using The Crittenden Automotive Library/CarsAndRacingStuff.com, you signify your agreement with the Terms of Use on our Legal Information page. Our Privacy Policy is also available there.

Car Insurance Costs

American Government Special Collections Reference Desk

British Government

Car Insurance Costs

House of Commons: Petition
July 13, 2015

The Petition of residents of Brierfield and Nelson,

Declares that the Petitioners believe that the price of car insurance has risen rapidly within the BB9 post code area making it unaffordable for many, as a result of a minority of drivers making fraudulent insurance claims.

The Petitioners therefore request that the House of Commons urges the Government and the insurance industry to work together to reduce insurance costs for car drivers living in the BB9 post code area so that owning a car can be made more affordable.

And the Petitioners remain, etc.—[Presented by Andrew Stephenson , Official Report, 15 June 2015; Vol. 597, c. 153.]

Observations from the Secretary of State for Transport:

Motor insurers are responsible for setting the terms and conditions of the insurance policies they offer based on their assessment of the risk posed by an applicant. This includes the applicant’s postcode, but also factors such as their age, driving experience and driving record along with the type of vehicle. In assessing the area where a person lives the number of claims made by people living in that area will be taken into account. It is always advisable that a driver shops around for a policy that represents the best value for money.

My Department does not have a breakdown of the price of motor insurance by postcode and has not made an assessment of geographical inequalities in the cost of motor insurance. However, nationwide the price of car insurance has fallen by more than 10% since 2012. Here is a link to the ABI’s premium index tracker of premiums paid by policyholders which shows the recent trend.


The Government are concerned about the cost of motor insurance. My Department works closely with others on this, including HM Treasury, Ministry of Justice (MOJ) and Department of Health. On 14 February 2012 the Prime Minister chaired a Cross Whitehall summit with major motor insurers which was followed by further summits chaired by Ministers in my Department. The Government have worked with motor insurers to address adverse behaviours by some of those involved in personal injury claims and on tackling fraud, such as whiplash reform and changes to the justice system to reduce the legal costs associated with claims. As a result the Government have developed a suite of effective reforms over the past few years which has helped to reduce the cost of motor insurance.

I appreciate that insurance premiums can be high, especially for young drivers because they are a high risk group. The insurance industry has developed technology such as telematics or ‘black box’ recorders which can be fitted in vehicles. These monitor a driver’s driving behaviour which can then lead to reduced premiums based on that driver’s actual risk. The Government welcome such developments.

Connect with The Crittenden Automotive Library

The Crittenden Automotive Library at Google+ The Crittenden Automotive Library on Facebook The Crittenden Automotive Library on Instagram The Crittenden Automotive Library at The Internet Archive The Crittenden Automotive Library on Pinterest The Crittenden Automotive Library on Twitter The Crittenden Automotive Library on Tumblr  

The Crittenden Automotive Library

Home Page    About Us    Contribute