Question to the Department for Transport:

To ask the Secretary of State for Transport, what representations he has received on the potential merits of exempting drivers between the ages of 17 and 25 who have telematics car insurance policies from insurance premium tax.

The Department has held a number of meetings with the motor insurance industry, at which a range of topics have been discussed. These topics include young driver safety and technology measures, such as telematics, which can impact on the cost of insurance.

Representatives of some parts of that industry have indicated to us that they support a reduction in, or exemption from, Insurance Premium Tax for telematics insurance policies for young drivers. Insurance Premium Tax is a matter for the Chancellor of the Exchequer.

As indicated in the British Road Safety Statement “Working Together to Build a Safer Road System”, published 21 December 2015, we will work with the insurance industry to incentivise safer behaviours and to reward the uptake of those new technologies and opportunities to improve skills that are proven to reduce collisions.