Millions of drivers forced off roads after car insurance price hikes as Britons demand 'bold action'
WATCH: ‘They just do it!’ Stephen Dixon gives top tip for slashing car insurance costs
GB NEWS
Millions of drivers across the country could be forced off the road as they are unable to afford car insurance, according to new research.
New data from Citizens Advice found that around 2.6 million people do not drive because the price of motor insurance is too expensive as the cost of living crisis continues to grip the nation.
It estimates that the number of people priced out of the car insurance market jumped by 900,000 in the past 12 months alone.
These worrying figures come as around three per cent of motorists said they have not driven in the last year because they can't afford car insurance.
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Experts are calling for more to be done to cut expensive car insurance costs
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An estimated two per cent of Britons who previously had car insurance in the last year have been forced to stop driving because of the unaffordable costs.
Citizens Advice reported that a 21-year-old office administrator who pays around £100 per month for coverage said she was being forced to budget because of the expensive costs.
She added: "I pay my insurance monthly which is a bit more expensive but I could never afford to do it annually.
"I can’t really afford to buy luxuries like going for days out, because it takes such a big part of my pay. I want to go out with my car, but my car costs are stopping me from going out."
One in four survey respondents said they had fallen behind on their car insurance payments in the last year, while one-third said they had to borrow, cut back on essentials or make late payments to other bills.
According to Confused.com, the average car insurance premium costs £861, a £134 drop from the end of 2023. However, many drivers are still reporting difficulties making these expensive payments.
In the last three months, prices have fallen by £21 (two per cent), despite many stating that bigger price drops are needed to help motorists stay on the road.
Dame Clare Moriarty, chief executive of Citizens Advice, said it was "shocking" how many people were being excluded from the car insurance market.
She added: "Car insurance is essential for so many people, whether the car is needed to commute to work, take children to school, or travelling to healthcare appointments.
"Bold action must be taken to tackle skyrocketing costs, including targeted support for those struggling most. We need a market that works for everyone, leaving unaffordable insurance premiums behind once and for all."
Labour has pledged to tackle expensive car insurance costs, with former Transport Secretary Louise Haigh organising a new taskforce to force prices down.
Data from the Financial Conduct Authority shows that motor insurance premiums in the UK have grown by an average of 21 per cent since June 2022. This is a far higher rate than comparable economies like Germany, France, Spain and Italy.
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Drivers are having to cut back on essentials to be able to afford car insurance
GETTYThe Government called on industry groups and consumer champions to tackle the spiralling costs with the taskforce designed to identify why prices are so high and what can be done to limit these hikes.
A spokesperson for the Association of British Insurers said: "The industry is determined to keep motor insurance as competitively-priced as possible.
"Our 10-point road-map sets out steps that the industry and Government can take to tackle insurance costs for all drivers, and we're also committed to playing our part in supporting the Government’s motor insurance taskforce."
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