Question to the Department for Transport:

To ask the Secretary of State for Transport, what targeted measures are being considered to improve (a) affordability and (b) access to car insurance for young people, particularly those in rural or poorly served public transport areas.

The motor insurance taskforce focused on driving down the cost of claims, with a view to stabilising and ultimately, reducing the premiums that drivers of all ages pay. The cross-government taskforce’s final report highlights the wider range of areas in which government is taking action; including taking steps to address vehicle theft and the cost of repairs. The government will continue to deliver against the actions set out in this report.

Motor insurers are responsible for setting the terms and conditions of the policies that they offer, and it is for them to decide the level of risk that they take in issuing any policy to a given applicant. Motor insurers use a wide range of criteria to assess the potential risk a driver poses, and this includes the age of the applicant, the type of vehicle being insured, the postal area where the applicant lives and the driving experience of the applicant.

The setting of premiums is a commercial decision for individual insurers based on their underwriting experience. The government does not intervene or seek to control the market.

We have not made a specific assessment on younger drivers, however the latest industry data shows that the average cost of motor insurance premiums has decreased, following the peaks seen between 2022 and 2024, government remains alert to developments in the cost of premiums and claims costs. The government will continue to engage closely with sector stakeholders as we deliver the actions set out in the taskforce report.