Jim Shannon – 2016 Parliamentary Question to the Department for Transport

The below Parliamentary question was asked by Jim Shannon on 2016-03-16.

To ask the Secretary of State for Transport, what discussions he has had with motor vehicle insurance companies on reducing the level of insurance premiums.

Andrew Jones

The Department for Transport has held a number of recent meetings with the motor insurance industry, for example to discuss young driver safety and technology measures which impact on the cost of insurance.

The Autumn Statement 2015 announced the Government will bring forward measures to reduce the excessive costs arising from unnecessary whiplash claims, and as the industry is competitive we expect average savings of £40 to £50 per motor insurance policy to be passed onto customers. Some insurers have already committed to pass on all savings to consumers as a result of the proposed changes.

The pricing of insurance products is a commercial matter for individual insurers in which the Government does not seek to intervene.