Autumn Statement reaction: Car insurance premiums

RAC Insurance director Mark Godfrey said: “Anything that reduces the cost of car insurance for motorists has to be welcomed, but we should be cautious around the saving figure of £40-£50 a year on average policy costs as previous estimates of savings have been over-egged and one of the reasons behind recent increases in car insurance premiums across the market. The devil, of course, will be in the detail which we wait to see.

“It is ironic this announcement comes just three weeks after Insurance Premium Tax was raised by 3.5% to 9.5% which has started to increase costs for motorists. Perhaps the Chancellor should have delayed the IPT increase until there is clarity on how these proposals will soften the impact of this increase on motorists.”