With young drivers facing unsustainable costs, she has urged better engagement with devolved ministers and immediate reforms to prevent motorists from being priced off the road.
Carla Lockhart MP said:
“Drivers across the UK are facing an insurance crisis, with premiums skyrocketing by an average of 42% in the last year. Young drivers, in particular, are being hit hardest. In Northern Ireland, the average annual premium for a young driver now stands at £1,748 with some premiums hitting prices which are more expensive than the car.
These rising costs make it increasingly difficult for young people to afford driving, which for many is essential for work.
The sharp rise in premiums is driven by increasing claims costs, inflated legal expenses, and inconsistent compensation structures across the UK. In Northern Ireland, accident claims are more frequent, legal fees are higher, and compensation payouts are significantly larger, factors that are driving up costs for all motorists.
Unlike in Great Britain, claims management companies in Northern Ireland remain unregulated which may lead to legal disputes which in other regions are avoided.
The Motor Insurance Taskforce, established by the Transport Secretary, was meant to address these issues, yet it has delivered little tangible progress. The last meeting involving the devolved Ministers was last November. I have requested an urgent meeting with the Transport Secretary to establish that steps are being taken and will be seeking reassurance that this issue has not fallen down the priority list.
The Government must step up and take decisive action. We need greater transparency in premium pricing with proper regulation of claims management practices, and a fairer, more balanced approach to compensation payments.
Insurers must be held accountable for these increases, and young drivers must be given a fair chance to afford driving. I will continue to push for reforms that protect motorists across the UK from being unfairly burdened with excessive costs. This is an issue that can no longer be ignored.”