UK Car Insurance Costs Hit 43% Inflation, Leaving Drivers Struggling
Car insurance costs in the UK are soaring, with inflation reaching a staggering 43%. Despite Rishi Sunak claiming to be "on the side of motorists," recent research reveals that UK drivers are facing significantly higher insurance costs compared to their European counterparts. The analysis shows a continuous rise in UK car insurance inflation since January 2022.
On average, car insurance now costs £776, witnessing a recent increase of £119 (18%) in the past three months alone. As a result, car insurance has become the third highest household bill after council tax and energy bills.
This surge in insurance costs adds to the existing concerns over the price of petrol and escalating prices for second-hand cars. The pandemic is partly blamed for the situation as repeated lockdowns disrupted car production and supply chains, leading to a shortage of new vehicles and driving up the value of used ones.
The SNP, seizing on the car insurance figures, highlights the disparity between the UK and independent EU nations in managing inflation. They argue that small independent countries like Belgium and Ireland, having control over their affairs and access to the European Union's market, have managed to keep their car insurance inflation rates relatively low. In contrast, the UK's car insurance inflation has spiraled out of control, reaching 43.1%.
In response to growing concerns about the cost of living and environmental impact, Rishi Sunak has ordered a review of the low-traffic zones in England, which promote alternative modes of transport. However, he has rejected calls to alter the 2030 ban on new petrol and diesel cars.
Meanwhile, cities like Glasgow, Edinburgh, and London are implementing or considering measures to tackle air pollution, including Low Emission Zones and Ultra Low Emission Zones.
In the fuel sector, petrol retailers are collaborating with the UK's competition watchdog to establish a scheme allowing motorists to compare live fuel prices online. The move comes after the regulator found that drivers were overcharged due to weak competition, leading to increased margins for supermarkets on fuel.
Overall, the article sheds light on the challenges faced by UK motorists, with rising insurance costs and concerns about the cost of living and environmental sustainability.