Cost of Motor Insurance

Debate between John McDonnell and Roger Williams

Tuesday 8th November 2011 Commons Chamber

[John McDonnell]

It is almost like the policy of excess that has been developed for other insurance costs. I believe that the onus is now on the Government to bring the insurance companies in for a thorough discussion about how we can take forward voluntary arrangements. However, there will come a time, which I believe we are nearing, when if we cannot get in place voluntary arrangements and incentives that work, we will have to introduce regulation.

Like many other Members, I cannot cope any more with driving along the road and seeing shrines to people who have died. The number in my area seemed to be peaking at one point, although I have not looked at the recent statistics. A large number of young people were being killed on the roads, and we would drive down the road and see the bouquets of flowers and the pictures of those young people. It relates to the point that the hon. Member for East Antrim (Sammy Wilson) made about youthful exuberance—young people get their first car and are out on the roads, and sometimes it goes to their heads. They might have their friends with them, and unfortunately it often results in tragedy.

[Roger Williams]

The hon. Gentleman is making a very powerful case. I know that the hon. Member for East Antrim (Sammy Wilson) made a point about a restriction of freedom, but surely that is the whole point of a driving licence. People have to pass a test, and maybe there ought to be another test for them to pass before they can have unlimited access to a car.

[John McDonnell]

It is true that we need to consider a whole range of measures. I believe that we need to make another attempt to find voluntary arrangements with the insurance companies, setting out a range of activities that people can sign up to and that we can technically monitor. In that way, we could reduce insurance premiums. However, if that is not brought to fruition, we may well have to move on to regulation. That could mean more testing, and in fact that extra testing need not just be for young people. It could be much wider than that, because it is not just young people who are affected, even though the statistics that the insurance companies produce demonstrate the high number of accidents among young drivers in their first couple of years after passing their test.

In addition, if regulation is to be introduced, and if it involves imposing technical solutions, the insurance companies should bear some of the cost. If it is not willing to work with us in promoting voluntary solutions effectively, it should bear the cost.

To return to an earlier point, this is about reducing costs, but it is also about reducing deaths and accidents. That does not just involve young people, because collateral damage is also done to pedestrians and others. The House has addressed that significant issue effectively in the debate tonight, and now it is over to us to work with the Government to get the insurance companies to agree a strategy that we can monitor over the coming year or so. We can see whether that works, and take legislative action if it does not, to demonstrate our seriousness.