Department for Transport confirms key date for change to car insurance pricing

The Government has issued an update on its efforts to bring down rising car insurance costs. Prices have dropped over the past year and a half, but they are still 25 percent more expensive compared with three years ago. Labour MP Darren Paffey asked in a written question in Parliament about what the Government is doing to tackle motoring insurance fraud and ghost brokers.

Ghost brokers are fraudsters who offer bogus car insurance or home insurance policies, that either do not exist or are invalid. Cabinet minister Dan Jarvis provided a response from the Government.

On the topic of car insurance, he mentioned one particular project under way to help bring down insurance bills for drivers. He said: "The Government launched a cross-Government motor insurance taskforce, co-chaired by the Department for Transport and His Majesty's Treasury, to help drive down the costs of motor insurance and will consider related fraud as part of this."

Mr Jarvis also set out a looming key date for the work of the taskforce. He said: "The taskforce is expected to publish its final report in the autumn."

The taskforce was launched in October 2024, setting out to research the reasons for "rapidly rising premiums" and to look at ways to keep down these costs.

Some of the factors it has been looking at include inflation, rising car thefts and the impact of the UK's pothole-ridden roads in causing damage to vehicles.

Insurance companies, consumer champions and regulators have taken part in the taskforce. Mr Jarvis also said in his response: "The Government recognises the harm caused by insurance fraud, including ghost broking.

"This is why we have launched an Insurance Fraud Charter with key firms setting out a series of voluntary measures to disrupt and deter insurance fraud. As part of the Stop! Think Fraud public communications campaign, the Government supported a campaign led by the Association of British Insurers, the City of London Police, and the Insurance Fraud Bureau to highlight the signs of Ghost Broking and encourage public reporting to CheatLine.

"We continue working with law enforcement and industry partners, including the City of London Police's Insurance Fraud Enforcement Department, to combat this crime and protect consumers."