An online petition calling for a dramatic change to the UK car insurance industry has reached over 56,000 signatures, and will now be debated in Parliament.
The petition Insurance should be on the car itself instead of the individuals who drive it – calls for UK car insurance to be more like that in countries like Portugal and the USA, where the vehicle is covered by insurance.
The petition says:
In some countries, such as America and Portugal, insurance is based on vehicle itself instead of being based on the individual who drives it. This is an effective method for families and friends as they are able to share a car without paying for multiple insurances.
As the petition has received so many online signatures, it will now be debated by MPs in Parliament today – but such a drastic change to how car insurance works in the UK is unlikely.
Prior to the debate – which is scheduled to be at around 4.30pm today (Monday 5 March 2018) – the Department for Transport issued the following response to the petition:
The Government has no plans to change the motor insurance system to require vehicles themselves, rather than the use of a vehicle, to be insured.
There are a variety of approaches to motor insurance taken around the world, and the UK Government is not alone in requiring the use of a vehicle to be insured.
The current motor insurance system of insuring individual drivers, rather than cars, does not prevent named drivers from being added to an insurance policy for shorter or longer periods of time. This allows for friends or relatives who share a car to be included on one insurance policy.
The price of insurance depends on a range of factors, including many which are specific to the person driving; for example, driving history (whether the driver has had previous claims or unspent convictions for drink driving, for example), the use they make of the vehicle (for example, for commuting or business use), and their years of driving experience.
If insurers had to cover the vehicle itself and were not able to take driver-specific factors into account in their pricing, then the cost of insurance would likely rise for those with a good driving record and history of driving safely.