Experts are warning that drivers could face serious “danger” in the upcoming Budget as two in five motorists demand urgent support with raising costs.
Roughly 41 per cent of drivers have called on the Chancellor to announce a price cap on car insurance premiums in the upcoming Budget announcement on October 30.
Drivers have seen insurance prices more than double this year with the average car insurance now costing £861, although prices in London remain shockingly high at £1,357.
Data from the Office for National Statistics recorded that between May 2021 and June 2024, premiums increased by 82 per cent while the price of consumer goods and services in general rose by 21 per cent.
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Drivers could face huge cost hikes in the upcoming Budget
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Further research revealed that 39 per cent of drivers want reduced road tax costs to be announced in the Budget while 37 per cent want to see a fuel duty drop.
Only 19 per cent of drivers want the Chancellor to announce more incentives to help with the cost of purchasing an electric car.
John Cassidy, managing director of sales at Close Brothers Motor Finance, said: “Despite being a necessity to so many of us, there is a danger that motoring will be given undue treatment at the upcoming Autumn Statement.
“Costs are rising across the board for drivers, and our latest research ought to be a wake-up call to the Chancellor who has the power to address this through policy. Taking action on insurance premiums, road tax and fuel duty would be popular interventions as shown by our survey.”
The research also highlighted that 17 per cent of motorists want better EV charging infrastructure promises while 16 per cent want more incentives to help with the cost of installing EV charging points.
Cassidy added: “The cost of car ownership is rapidly becoming unaffordable for many motorists at a time where many are already feeling a financial squeeze.
“We have already seen manufacturers backtrack on electrification plans, and incentives could play a crucial role if the Government expects to achieve its net zero ambitions through plans such as the reinstatement of the 2030 ban on new petrol and diesel vehicles.”
When discussing the main concerns with driving in the next 12 months, over a third (34 per cent) of surveyed drivers said insurance hikes were the biggest worry.
To help combat the rising prices, Transport Secretary Louise Haigh and Economic Secretary to the Treasury Tulip Siddiq are set to introduce a new motor insurance taskforce with the aid of insurers to lower the impact on motorists.
Hannah Gurga, Director General at the Association of British Insurers told GB News: “We’re aware just how tough the last couple of years have been for motorists and we have been working hard with our members to tackle the cost of claims that impact on premiums.
“While average premiums have fallen recently, there should be no loss of momentum on tackling costs and we look forward to bringing ideas to the taskforce table, building on the 10-point roadmap we released earlier this year.”
Meanwhile, just under a third (31 per cent) detailed the rising fuel prices as a growing problem while a fifth (20 per cent) detailed how potholes damaging their vehicles was one of their biggest concerns.
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The FCA announced that it would investigate motor insurance policies
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On top of the task force launched by the Government to tackle insurance prices, the Financial Conduct Authority has also issued its own investigation into the problem caused by motor finance.
Currently in the UK over 20 million people pay for their insurance using this measure with the watchdog highlighting how 79 per cent of adults in financial difficulty have used the product.
