Motor Vehicles: Insurance
The question
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of credit hire vehicle costs on motor insurance premiums for consumers.
Answered by Rachel Blake
The cross-government Motor Insurance Taskforce published its final report in December 2025, setting out actions being taken by government, regulators and industry to help reduce premium costs. The Financial Conduct Authority's (FCA) 2025 review of motor insurance claims costs helped inform this work.
The Taskforce’s report considered the contribution of replacement vehicle costs, including credit hire, to wider motor insurance claims costs and identified actions to reduce those costs. This includes work by the FCA, the Association of British Insurers, and insurers to improve the handling of claims, reduce referrals to third parties and ensure that credit hire costs are fair for consumers.
Verbatim has judged this answer against the question that was actually asked — answered, partly answered, or evaded. Sign in to see the verdict →