Motorists will avoid annual EU price hike thanks to Brexit powers – InsuranceNewsNet
LONDON, April 25, 2022 /PRNewswire Policy/ —
Controversial EU Vnuk car insurance law set to be removed from UK law as bill passes Parliament.
British motorists will be spared a possible £50 annual increase in insurance as the government continues to grapple with cost of living pressures and uses post-Brexit freedoms to end a controversy EU straight.
A bill to remove EUVnuk car insurance law passed Parliament today (April 25, 2022) and will then receive Royal Assent to confirm the changes to the law.
EU the law could have required a wider range of vehicles beyond cars and motorcycles to have auto insurance, such as golf carts, mobility scooters, and quads.
This would have extended to vehicles on private land, meaning even people with home lawn mowers would potentially need car insurance. However, other insurance options are already available for people who need coverage on their private land, such as farmers.
Failure to enforce the law will prevent a rise of almost £2 billion for the country’s insurance sector, which would have translated into a potential increase in individual insurance premiums of around £50 per motorist per year .
EUVnuk car insurance law was dropped
transport secretary Grant Shapp mentioned:
“Dismiss this nonsense EU rule will protect the pockets of hard-working Britons as we continue to help ease cost-of-living pressures.
“It’s another Brexit win and I’m delighted this bill has rightfully passed Parliamentsaving billions of pounds in extra insurance costs and protecting our global motorsport industry.”
The bill was presented to Parliament by Stone Bone MP, who said:
“I am delighted that Brexit has allowed me to push a bill which could save the average motorist £50 a year.
“I am grateful for the help that Bureau of automobile insurers and the government provided in drafting the bill. My motor vehicles (Compulsory insurance) Bill is just one small example of our Brexit dividend.”
Vnuk would also have covered motorsports collisions, potentially involving vehicles ranging from go-karts to Formula Onewhich would have been treated as ordinary traffic accidents requiring insurance.
This could have decimated the motorsports industry due to additional insurance costs of around £458m each year. Scrapping Vnuk will therefore save the world’s leading sector from potential collapse and secure hundreds of thousands of industrial jobs in the process.
The CEO of The Bureau of automobile insurers (MIB), Dominic Claydonmentioned:
“The MIB welcomes the passage of Motor Vehicles (Compulsory insurance) Invoice. We have campaigned on this issue for a number of years and are delighted that the legislation needed to remove the effects of Vnuk has now been passed.
“Motorists will no longer face the added costs of future accidents on private land and accidents involving a range of additional vehicles – including lawnmowers and golf carts. This will save everyone money. motorists and will bring us back to the common sense approach we had before the Vnuk shutdown in 2014.”
In addition to the likely financial burden for UK road users, the Vnuk rules are seen as unnecessary as there are already insurance packages available to Britons which cover certain risks on private land.
Motor insurance will always be required for all vehicles on the roads or other public places. However, the removal of Vnuk means that insurance for vehicles used on private land is not required.
THE SOURCE UK Department of Transport
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