Rishi Sunak says he is “on the side of motorists” but UK drivers might take a bit of convincing given new research showing they are facing skyrocketing insurance costs compared to the rest of Europe.
Analysis by the House of Commons Library found the motor insurance annual inflation rate grew to 43.1% in May 2023.
In the same month, the figure stood at 2.6% in Germany, 0.4% in France and 0.0% in Spain.
In both Belgium (-0.4%) and Ireland (-3.6%) the annual motor insurance inflation rate reduced in the same month.
The analysis found that UK car insurance inflation has grown since January 2022.
On average, the cost of car insurance is now £776, increasing by £119 (18%) in the past 3 months alone and is now the third highest household bill after council tax and energy bills.
It comes amid continuing concern over the cost of petrol and rising prices for second-hand cars.
READ MORE: Doug Marr: Buying a new car drives me round the bend
The valuation of a used Hyundai Santa Fe climbed nine per cent in 2021 and another 20 per cent last year, with a Mini One rising by eight per cent and 20 per cent over the same period, according to used car platform Motorway.co.uk.
The pandemic has been blamed with repeated lockdowns hit car production and supply chains, leading to a shortage of new motors and driving up the value of used ones.
The SNP seized on the car insurance figures saying independent nations within the EU had “managed to keep inflation low”.
The party's transport spokesman, Gavin Newlands MP, said: "This latest analysis demonstrates that independence is the only way Scotland can rid itself of broken, Brexit Britain.
"The Prime Minister and the Chancellor keep telling the public that inflation is a global problem but this independent analysis shows that Brexit Britain is being hit far harder than our European neighbours.
READ MORE: Edinburgh Council leader vows to 'learn from mistakes' of Glasgow LEZ roll-out
"While independent nations within the EU have kept car insurance inflation relatively low, the UK's has spiralled out of control - skyrocketing to a staggering 43.1%.
"Small independent countries like Belgium and Ireland - who have complete control over their own affairs and access to the European Union and world's largest single market - have managed to reduce their inflation rate substantially.
"Meanwhile, Scotland continues to suffer under the control of Westminster governments we do not vote for."
It comes as Rishi Sunak has ordered a review of the roll-out of low-traffic zones in England, which are designed to promote the use of other modes of transport. The Prime Minister said many people were “reliant” on their cars.
However, he knocked back calls to change the deadline for the 2030 ban on new petrol and diesel cars.
Glasgow is now almost two months into its Low Emission Zone covering parts of the City Centre, which bans most pre-2006 cars. Almost 100 drivers a day were fined in the first month.
Edinburgh is gearing up to roll out the air pollution measure next year.
London mayor Sadiq Khan wants to expand the city’s Ultra Low Emission Zone to the borders of the capital.
Meanwhile, Petrol retailers are to work with the UK's competition watchdog to set up a scheme to allow motorists to compare live fuel prices online.
Supermarkets and major suppliers met Energy Secretary Grant Shapps on Monday after the regulator found drivers were overcharged due to weak competition.
It found annual supermarket margins on fuel had increased by 6p per litre between 2019 and 2022.
Mr Shapps said the new scheme would allow motorists to find the best deals.
The energy secretary said he met with bosses from Asda, Tesco, Morrisons, Sainsbury's and other major fuel retailers to "call time on their inexcusable behaviour of over-charging drivers".
The government also wants the pricing data to be available to third parties such as satnavs or map apps.
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules hereLast Updated:
Report this comment Cancel