There has been a very substantial rise in the number of uninsured cars in the UK in the past few years – from almost none to 2.5 million – according to a report on the Fleetworld website.
Fleet World says the figures come from the new Private Motor Insurance Market Report published by Lake Market Research, which compares DfT data on the number of private cars in use and insurance industry data on the number of private cars insured.
The research suggests that the proportion of private cars that were insured fell to 91% in 2012, compared with almost 100% in 2006. This is equivalent to 2.5 million cars currently uninsured in the UK.
This increase in the number of uninsured cars is attributed to the financial crisis and the onset of recession.
The research also found consumer suspicions of profiteering, widespread mistrust of price comparison websites and the motor insurance industry’s “reluctance or inability to engage with consumers in a meaningful way”.
The research follows the December 2013 publication of the Competition Commission’s provisional findings on the £11bn private motor insurance market. It found that ‘it is not working well for motorists’ and is ‘looking at ways to reduce the cost of premiums’.
Julie Hodgson, Lake Market Research managing director, said: “The increase in the number of uninsured cars is a real worry. Are people being priced out of using their cars or are there many more people driving around without insurance?”
Click here to read the full Fleetworld news report.