Car insurance costs pricing 2.6 million people off roads
New research by Citizens Advice has revealed that 2.6 million people in the UK don’t drive because they’re unable to afford car insurance costs.
This includes almost 900,000 drivers who have had to cancel their cover in the last 12 months, in addition to 1.7m people who have been priced out of the market for longer than a year.
Of those who have cancelled policies in the last 12 months, 77% reported that this had a negative impact on their day-to-day life.
However, Citizens Advice has warned that this is only the tip of the iceberg. Its research also reveals that almost one in five drivers (seven million) have had to borrow, cut back on essentials, or fall behind on other bills to pay their car insurance in the last 12 months.
Motor insurance has risen 40% in the last 12 months to an average price of £812, with drivers aged 18-34 paying twice as much as those aged 35-54.
The charity also found that 25% of people on benefits have fallen behind on their car insurance payments in the last 12 months compared to 11% of drivers overall, while the average cost of car insurance is £546 higher for people of colour.
It is also concerned that soaring premiums could lead some people to break the law by cancelling their insurance but continuing to drive uninsured.
Dame Clare Moriarty, chief executive of Citizens Advice, said:
“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. But a shocking number of people are being excluded from this market. We’re concerned a hidden affordability crisis is affecting millions of people.
“We welcome commitment by the government to tackle this issue but it’s crucial that nothing is left off the table. 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.”
