Question to the Department for Transport:

To ask the Secretary of State for Transport, what steps she is taking to help reduce the cost of car insurance for drivers aged between 17 and 25.

The setting of premiums is a commercial decision for insurers based on their underwriting experience. Age and experience are factors that insurers use to price policies and there is evidence to suggest that younger drivers and those with less experience carry a higher risk.

However, the motor insurance market is competitive, and we recommend consumers shop around to get the best deal.

This Government is committed to tackle the high costs of motor insurance. The cross-Government motor insurance taskforce, launched in October, is comprised of ministers from relevant government departments and the Financial Conduct Authority and Competition and Markets Authority. The taskforce is supported by a separate stakeholder panel of industry experts representing the insurance, motor, and consumer sector.

This Taskforce has a strategic remit to set the direction for UK Government policy, identifying short- and long-term actions for departments that may contribute to stabilising or reducing premiums. It will look at the increased insurance costs on consumers and the insurance industry, including how this impacts different demographics, geographies, and communities.