Motor Insurance
The question
To ask the Chancellor of the Exchequer, what assessment her Department has made of how the age of policyholders is reflected in motor insurance premiums; and whether she has had discussions with the Financial Conduct Authority on the transparency of age-based pricing in the motor insurance market.
Answered by Rachel Blake
Insurers make commercial decisions about the terms on which they will offer cover following an assessment of the relevant risks. This is usually informed by the insurer’s claims experience and other industry-wide statistics
The Equality Act 2010 generally prohibits discrimination based on certain personal characteristics, including age. However, the law accepts that some exceptions apply for insurance. These relate to age and disability. The Act stipulates an insurance provider cannot refuse to cover potential consumers or charge more for insurance as a result of these characteristics, unless they base their risk assessment on relevant information from a reliable source.
The Government’s Financial Inclusion Strategy was published on 5 November 2025 and identifies insurance as a core component of household financial resilience. It includes key interventions to improve the uptake of specific insurance products, including contents insurance, as well as signposting initiatives to better support individuals in finding the most appropriate cover.
The Financial Conduct Authority (FCA) requires that insurance products provide fair value and, where this is not the case, the regulator has robust powers to take action.
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