Community car sharing clubs in the UK are facing a crisis due to soaring insurance costs. These clubs, which provide a cheaper alternative to car ownership for people living in remote areas, have seen major increases in their insurance premiums in the past five years. As a result, some clubs have already closed, and others are at risk of shutting down. The Calder Valley Car Club, also known as Hour Car, is one such club facing possible closure. Their insurance premium for their fleet of five hatchbacks rose from £6,600 to £18,000 at their last renewal. The club had to sell their MG 5 EV when its premium increased to £5,000.
The situation is not unique to Hour Car. The Derwent Valley Car Club in Derbyshire, which runs five electric cars, is anxiously awaiting their renewal notice. The future of the club hinges on the cost of insuring their fleet. Mick Marston, the club’s founder, hopes that their insurer will consider their unique position and the support they provide to the community, but he is not optimistic.
These community car sharing clubs play a crucial role in rural villages where public transport is unreliable and roads are narrow, making it difficult to park personal vehicles. They offer an affordable and convenient option for residents who cannot afford to buy a car or find it impractical to own one. Additionally, these clubs contribute to decarbonizing the community by promoting shared transportation.
Richard Dilks, CEO of Collaborative Mobility UK, warns that these smaller community clubs are facing an “existential crisis.” Despite efforts to reduce premiums with insurers, they have received little interest or support. Dilks fears that if these clubs disappear, people will be forced to rely on unreliable public transport or spend thousands of pounds on a car.
The Association of British Insurers acknowledges the importance of community-owned car co-operatives but recognizes the challenge in measuring driver risk for such clubs. They are currently discussing the situation with their members and the British Insurance Brokers’ Association. However, without a resolution, these clubs may cease to exist, leaving a void in transportation options for rural communities.
It is imperative to find a solution to the insurance cost issue faced by these community car sharing clubs. The government and insurance industry must work together to create policies and schemes that support and sustain these clubs. Otherwise, the loss of these clubs would not only impact local people but also hinder efforts to promote sustainable and accessible transportation options in remote areas.
