Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if she will prohibit insurers from a) increasing premiums and b) removing no-claims discounts for hit-and-run victims in motor vehicle accidents.

Insurers make commercial decisions about pricing and the terms of cover, they offer, including no claims discounts, based on their assessment of the relevant risks. The government does not generally intervene in these decisions by insurance companies and has no plans to add to existing legislation at this time.

However, the government is determined that insurers should treat customers fairly and firms are required to do under Financial Conduct Authority (FCA) rules. The FCA requires firms to ensure their products offer fair value, meaning the price paid by consumers should be reasonable compared to the overall benefits received. FCA rules also require insurers to handle claims fairly and promptly, provide appropriate guidance throughout the claims process, avoid unreasonable rejection, and settle claims promptly once terms are agreed.

The government launched a cross-government Motor Insurance Taskforce in October 2024 to address the rising costs of motor insurance, identifying short and long-term actions aimed at stabilising or reducing premiums, while maintaining appropriate levels of cover. The Taskforce’s final report, setting out actions being taken by government, regulators and industry to help reduce premium costs, was published in December 2025.