Question to the Department for Transport:

To ask the Secretary of State for Transport, if he will take steps to (a) reduce variation in car insurance premiums between different parts of the UK and (b) ensure that people are not being charged a higher premium for living in a poorer area.

The pricing of insurance products is a commercial decision for individual insurers based on their assessment of the level of risk posed by a given applicant and the Government does not seek to intervene. The Department for Transport has held a number of meetings with the motor insurance industry, for example, to discuss technological measures which have the potential to bear down on the cost of insurance.

The Government has brought forward measures to reduce the excessive costs arising from unnecessary whiplash claims, and expects average savings of £40 to £50 per motor insurance policy. The motor insurance market is intensively competitive and the Government therefore expects that the insurance industry will pass on savings to consumers.