UK drivers are set to avoid an estimated £50 a year increase in motor insurance costs as the EU’s controversial Vnuk law is set to be axed from British legislation.
The bill passed a second reading in the House of Lords on Friday, Transport Secretary Grant Shapps announced via Twitter.
“Delighted to report Lord Robathan – working with Govt – has taken us a step closer to remove an EU requirement that if implemented would have increased motorists’ insurance premiums by c.£50 a year,” Schapps tweeted with the hashtags #VNUK and #BritishDividend.
The Vnuk law requires vehicles other than cars and motorbikes to be insured, including those previously not requiring insurance, such as golf buggies, mobility scooters, and quad bikes. The legislation also extends to vehicles on private land, meaning people with a ride-on lawnmower at home would require insurance where it would have previously not been needed.
According to the government, the insurance industry would have been liable for nearly £2 billion in extra overall costs had the contentious law been implemented in the country. This would have meant about a £50 yearly increase in motor insurance costs.
“We have always disagreed with this over-the-top law that would only do one thing – hit the pockets of hard-working people up and down the country with an unnecessary hike in their car insurance,” Schapps said when the plan to scrap the law was unveiled last February. “I am delighted to announce that we no longer need to implement it.”
“Scrapping this rule would save the country billions of pounds and is part of a new and prosperous future for the UK outside the EU – a future in which we set our own rules and regulations,” he added.
