The Association of Consumer Support Organisations is pushing the new Labour Government to make good on its pre-election rhetoric and investigate the private motor insurance market. ACSO said the latest figures from the Compensation Recovery Unit demonstrated the need for a fresh look at the market.

Matthew Maxwell Scott, executive director at ACSO, said the falling figures contradicted insurers saying that claims costs were driving insurance premium rises.

He said: “There were nearly 78,000 motor injury claims registered between April-June 2024, 8,000 fewer than the equivalent quarter last year, and 13,000 down on the previous quarter. This is a reduction of well over 50% since 2019.”

He added: “No one can doubt that inflation has impacted the insurance market, including for claims, but we disagree with insurers asserting that it’s all the fault of injured people making a claim. There are other factors at play.

“An independent inquiry will establish some home truths about the way the insurance market for private motor works. Motor insurance is, after all, a compulsory purchase and the market should not be in a state where it becomes impossible, or economically unviable, to make a claim after an accident. It also encourages some people to drive uninsured, which is as unwise as it is illegal and unfair on the rest of us.”