Drivers are likely to deal with car insurance pain into the new year after one expert said the likelihood of Government action to help motorists was highly unlikely.
Car insurance prices have jumped dramatically in recent years, with leading providers saying costs have reached their highest level on record.
An average car insurance policy now costs £924, a staggering jump of 58 per cent in just 12 months, according to Confused.com, with some younger motorists paying almost £3,000.
Many have called the price of car insurance unsustainable, especially when paired with the cost of living crisis, prompting many to call for help to slash premiums.
Many drivers have admitted to struggling with their car insurance costs
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Kevin Pratt, car insurance expert at Forbes Advisor, analysed whether drivers could be helped with car insurance costs by direct Government action.
Speaking to GB News, he said: "No - the regulations say insurers must treat their customers fairly, and someone facing a huge increase in their premiums might claim they are being unfairly penalised, especially if they haven't made a claim and their circumstances haven't changed.
“But the insurer would successfully rebut this by saying they are setting premiums to reflect their costs.
“And because insurance is a free and competitive market, there is no scope for the Government to intervene.”
The Association of British Insurers (ABI) had called on the Chancellor to make urgent tax changes to ensure drivers are protected from expensive car insurance prices, although this was not included in the Autumn Statement.
The changes would have seen the Government remove insurance premium tax (IPT) which adds almost £100 to the annual cost paid by consumers for car and home insurance.
Kevin Pratt added: "There is one thing the Government could do to help - adjust or remove insurance premium tax.
“This is charged at a flat rate of 12 per cent on car insurance (and home insurance too). That means the higher premiums rise, the more tax goes to the Treasury.
“That doesn't feel very fair - but don't expect the Chancellor to announce a change any time soon."
With car insurance rates seemingly set to increase this year, all eyes will be on Jeremy Hunt when he delivers the Spring Budget.
Set for March 6, the Chancellor will outline the Government’s financial plan for the year with drivers hoping he will introduce measures to ease the burden on the UK’s millions of road users.
Both the Conservatives and the Labour Party have pledged to help drivers deal with the cost of living crisis and the rising cost of motoring.
Transport Secretary Mark Harper has been leading the charge in helping Britons through the “Plan for Drivers”, pledging to remove any “anti-motorist” schemes like low traffic neighbourhoods and 20mph speed limits.
In a bid to gain supporters, Labour has vowed to crack down on car insurance costs, improve public transport and remove planning barriers to upgrade transport networks.
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Jeremy Hunt will unveil the Spring Budget on March 6
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It claims this will save drivers up to £668 in lower running costs, in addition to cutting journey time by slashing traffic rates.