Motor Insurance

The cross-government taskforce on motor insurance was formed in October 2024, to fulfil the government’s commitment to tackling the soaring cost of motor insurance in the UK.

Government departments and regulators are acting to address the broader factors that contribute to the cost of claims, such as vehicle theft and the cost of repairs. Though the taskforce has now concluded, the government will continue its work to deliver against the actions set out in the report.

In 2017, the Financial Conduct Authority introduced rules to increase transparency and engagement at renewal in general insurance markets. These apply when an insurer or intermediary sends a general insurance renewal notice to a consumer. Firms are required to:

• Disclose last year’s premium at each renewal, so that it can be easily compared to the new premium offered.
• Encourage consumers to check their cover and shop around for the best deal at each renewal.
• Identify consumers who have renewed four, or more, consecutive times, and give these consumers an additional prescribed message encouraging them to shop around.

These rules are intended to encourage consumers to engage with their insurance renewal on both cover and price.