Question to the Department for Transport:

To ask the Secretary of State for Transport, what assessment she has made of (a) the potential implications for her policies of car insurance terms allowing providers to retain up to 90 percent of refunds on cancellation and (b) the potential merits of reforming this practice.

The Secretary of State has made no assessment of the potential implications of motor insurance terms allowing providers to retain up to 90 percent of refunds on cancellation, or the potential merits of reforming this practice.

Motor insurers are responsible for setting the terms and conditions of the policies that they offer. The Government does not generally intervene or seek to control the market.

The UK motor insurance market is very competitive and shopping around for the best possible option before making decisions is likely to benefit customers.