Vale of Clwyd MP Dr James Davies has supported a Bill which will ensure British drivers avoid an estimated £50 a year increase in motor insurance costs.
Following an incident in 2007, a European Court of Justice ruling in 2014 directed the extension of the provisions requiring motor insurance for those using public roads to a wider range of vehicles on private land, including in gardens, on golf courses, at motorsport events and even in museums.
This meant that potentially, people would need motor insurance for lawnmowers, quad bikes, golf buggies, mobility scooters and other light electric vehicles, motorsports vehicles, and agricultural and construction machinery.
Speaking in support of the Bill to scrap these changes in the House of Commons, James pointed out that in practice they would be largely unenforceable, and would quite possibly be an unwelcome duty on the police.
He also emphasised the impact they would have on people in North Wales, who depend heavily on their cars due to public transport provision being “limited”.
He said:
“For most, of course, the primary benefit of the Bill is that it will overcome a punishing rise in insurance premiums. The average motor insurance premium in the UK is already £436 per year, rising to over £1,000 for higher-risk groups.
“In the three months to December 2021, there was a further 5% increase in premiums, and as life returns to normal and - we hope - our road miles increase again, that may well increase further. Doing what we can to stop additional price hikes should therefore be a priority, and the Bill will help to achieve that.”
James highlighted that The Government Actuary’s Department has calculated that implementing the ECJ’s ruling would increase motor insurance bills by up to £50 for each of the 25 million motorists in the UK as a result of their subsidising off-road insurance claims.
He added:
“At a time when petrol and diesel costs have been rising, a further increase in the cost of running a car would be most unwelcome. That is particularly significant for many people in my north Wales constituency, for whom car ownership is often vital. Local public transport provision is limited in many ways. As chairman of the all-party parliamentary group on Mersey Dee North Wales, I am working with hon. and right hon. Members and local government representatives and officials to secure improvements in that.”
“Sir Peter Hendy’s Union connectivity review has recognised the significance of upgraded rail connectivity. Even so, the improvement to public transport connections is a slow process. Sir Peter also recognised the need to upgrade road infrastructure, including the A55. The transition to electric vehicles means that cars are here to stay, and my constituents need them to be affordable.
“The Bill’s explanatory notes acknowledge that its provisions could lead to a loss of tax revenue from insurance premium tax. By pledging their support for the Bill, Ministers are clear that they have the interests of motorists at the forefront of their considerations.”
