Labor vows to crack down on 'unfair' car insurance as quoted prices jump 56%

Louise Haigh, shadow transport secretary, said the Financial Conduct Authority and the Competition and Markets Authority must investigate the car insurance sector.

Car insurance costs have gone ‘out of control’, Labor says(Getty Images)

Labor has called for an investigation into the “out of control” cost of car insurance.

Millions of drivers have been affected by soaring car insurance prices over the past two or three years.

Insurers say they are passing on a sharp rise in claims costs, driven by a sharp rise in everything from car parts to used engines.

Many in the industry insist they have suffered losses when it comes to auto policy. But Louise Haigh, shadow transport secretary, said the Financial Conduct Authority and the Competition and Markets Authority must investigate the sector.

She said: “Car insurance is a legal requirement and an essential – not a luxury. Unions will not stand idly by while drivers are punished by the out-of-control cost of coverage.

“We will urgently call on regulators to crack down on any unfair practices and clearly reveal the causes of soaring costs for consumers. »

Louise Haigh told the Mirror that Labor would clamp down on soaring car insurance costs.(Getty Images)

The average quoted price of auto insurance jumped 56.4% in the year to February, according to Consumer Intelligence. In February, drivers most often received an annual quote of between £500 and £749 – lower than the 67.2% in the year to the end of November, but still the third highest annual rise on record since data tracking began in 2012.

Some insurers have started to see a rebound in profits. Admiral, the UK’s largest car insurer, earned almost £443m last year, up 23% on the previous 12 months.