Campaigners have called for major driving rule updates to car insurance policies in a bid to tackle soaring costs faced by cash-strapped road users.
A new Parliament petition set up by James Billinton has suggested a new state-owned car insurance provider should be formed.
James has pointed the finger at private car insurance firms for the “sly high” prices motorists are being forced to pay across the UK.
He said: “Car insurers appear to be able to charge what they like, which we believe has resulted in unfair insurance prices for many.
“Creating a state-owned car insurance provider could help ease pressure on working people who are struggling to afford basic necessities.
“Car insurance is required by law for motorists, so why allow car insurance companies to set our prices sky high in a Cost of Living Crisis us working people face?
“We believe this is unfair and should be addressed. If a law is passed, such as a requirement to have valid insurance, it should be provided by those who implemented the law, not private corporations.”
The petition needs 10,000 signatures to receive an official response on the matter from the Government
Meanwhile, 100,000 signatures before the deadline on August 6 will mean the topic is considered for debate by MPs in Parliament.
According to data from the Association of British Insurers (ABI), premiums were 25 percent higher in 2023 than the year before.
By the end of last year, average costs were 34 percent higher compared to Q4 2022.
Earlier this year, a Reddit user also called for the introduction of a state-owned car insurance firm to offer cover on a “minimal profit basis”.
They said: “I might be living in a dream world but it would put money into the government and offer some competitive advantage to the current insurance market. They already offer MOT stations. I genuinely can’t think why this isn’t being done right now.”
However, two road users called out possible issues with a central scheme compared to offering services around different companies.
@MattMBerkshire added: “Given motor is running at a loss, this subsidy would be a tax on people that don’t drive… If it runs at a loss, that immediately needs to be plugged by central funding and not trickle through from premium.”
Meanwhile, @YoYo5465 posted: “I just moved from British Columbia, Canada, where it’s Government-provided insurance. You have one choice and that’s it.
“It’s also provided by the same people who deal with licensing, so the equivalent would be DVLA providing your insurance. You either pay what they say – or you don’t drive. I wouldn’t recommend that system, either.”
