Labour announces pothole plan as it looks to cut car insurance premiums

Labour has pledged to fix up to 1m more potholes every year as it looks to crack down on car insurance costs.

According to shadow transport secretary Louise Haigh, drivers had to pay out £500m last year in repairs caused by potholes.

And according to insurer Zurich Municipal, local authorities saw 81 pothole-related vehicle damage claims in 2022, up from 24 the previous year.

Haigh said her party would ”clear up the mess the Tories have left our roads in”.

In November 2023, the Conservatives pledged to spend £8.3bn in resurfacing over 5,000 miles of road across the country over the next 11 years.

It also said local highways authorities would receive £150m for the 2024/2025 financial year.

However, Haigh said: “We will make our roads safer for all who use them and remove the barriers which bog down our planning system, speeding up infrastructure improvements and cutting costs for taxpayers.”

Premiums

This came after Haigh said Labour would call on regulators to investigate increasing car insurance premiums.

The rise comes amid an increase in costs to insurers, with EY estimating that for every £1 collected in premiums, the industry paid out £1.14 in claims and expenses.

And from the end of 2017 to present, costs for insurers to pay claims have risen by 23%, according to the ABI.

However, Haigh said that regulators, such as the FCA and Competition and Markets Authority, needed to investigate the sector.

“Car insurance is a legal requirement and an essential – not a luxury. Labour won’t sit back and watch while drivers are punished by the out of control cost of cover,” she told The Mirror

“We will urgently call in the regulators to crack down on any unfair practices and to come clean on the causes of soaring costs for consumers.”