The SNP has urged Labour Chancellor Rachel Reeves to “get a grip on the costs of UK car insurance” at the budget.
SNP-commissioned analysis found that between May 2021 and July 2024 UK car insurance premiums rose by a total of 82 per cent. In the same period, car insurance in neighbouring EU countries only rose by 19 per cent.
The research – carried out by the House of Commons library – showed that between August 2022 and July 2023 car insurance grew 29 per cent. It also increased to 38 per cent between August 2023 and August 2024. This rise comes despite wider inflation falling.
The SNP has urged Labour to “put money back in people’s pockets by cutting the cost of insurance.” Labour’s general election manifesto pledged to “support drivers by tackling the soaring cost of car insurance”.
SNP Economy spokesperson Dave Doogan said: “At the general election, the Labour Party promised voters it would tackle the soaring cost of car insurance. The UK budget will be the test of whether they will honour that pledge – or if it’s destined to be yet another broken promise from the Labour Government.
“Inflation might be easing but the crippling costs of car insurance is only getting worse – and it’s now in danger of being locked in permanently. It’s time for the Labour government to get a grip on the soaring costs of a UK car insurance industry where prices always rise like a rocket but fall like a feather.
“After the massive 82% rise in car insurance over the last 3 years – smaller price rises won’t cut it for consumers – it’s time for car insurance costs to finally come down.
“These soaring costs are another example of broken, Brexit Britain – where consumers have been hit harder by inflation on energy, food and insurance.
“While independent nations within the EU have kept car insurance costs in line with general inflation – the UK’s have spiralled out of control. While citizens of the European Union enjoy the benefits of the world’s largest single market – consumers in broken, Brexit Britain are left paying the price of Westminster.
“People in Scotland were promised change at the election but all we have seen so far is Labour ministers lining their pockets with freebies while imposing austerity cuts on the rest of us. It’s time to put money back in people’s pockets by cutting the cost of insurance.”
Insurance bodies met with UK Government ministers and consumer groups on Wednesday as the Government committed to crack down on “spiralling” costs of motor insurance.
Transport Secretary Louise Haigh and Economic Secretary to the Treasury Tulip Siddiq launched a new motor insurance taskforce, charged with examining the cost of cover and those that are disproportionately affected by factors such as age or ethnicity.
The UK Government was approached for comment.
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