Oral Answers to Questions

Clive Efford Excerpts

Thursday 5th May 2011 Commons Chamber

[Clive Efford (Eltham) (Lab)]

One of the biggest incentives to drive illegally is the premium imposed by insurance companies. There are various schemes to try to reduce those costs, particularly for young drivers who are a problem in this regard. GPS can measure journey times, the hours of the day when people travel, and who else is in the car. Is the Department in negotiation with insurance companies to progress such schemes so that young people can afford insurance premiums and avoid driving without insurance?

[Mike Penning]

Yes, we have frequent discussions with the insurance industry, but I must stress that being insured is not a choice; it is a legal requirement. We are trying to drive down the cost, which is partly the result of uninsured drivers driving up the cost of those who are insured, creating a perverse incentive, and partly the result of fraud, which is a massive issue that the Select Committee considered and to which I gave evidence. We are working with the insurance industry on some of the measures referred to by the hon. Gentleman. It is also important when requesting an insurance quote to tell the truth, for example about the number of points on one’s driving record, so that the insurance is not invalid when a claim is made.