-- Coventry-based auto locksmiths, Eydens, have responded to a report from the Financial Conduct Authority (FCA), which investigates the factors behind rising car insurance premiums and outlines the role of a Government Motor Insurance Taskforce established to identify actions to stabilise and reduce costs for UK drivers.
The multi-agency initiative examined claims data from around the UK, finding significant increases in the costs of vehicular repairs, thefts, fraud and replacement vehicles, and identifying key factors that have impacted the 44 million insurance policies sold a year, with a value that now exceeds £20 billion.
Clarity Around Reasons for Higher Car Insurance Costs
According to the FCA, rising claims costs are central to why premiums continue to increase, with repair expenses alone accounting for around 65% of the overall hike in insurance costs between 2019 and 2023. They have been driven by longer repair times, more complex technology, and shortages of skilled labour.
However, it also found that vehicle theft is a growing concern and accounts for an estimated 10% of the increase in claim costs, as higher-value vehicles and more sophisticated criminal techniques mean even newer cars are not invulnerable to theft.
Eydens notes that these trends reflect their own experiences as a long-standing auto locksmith, particularly regarding cars with keyless entry systems, which have increased demand for replacement keys and security upgrades to proactively prevent theft.
Company owner Rob Eyden, speaking on behalf of Eydens, says, ‘As an auto locksmith, increases in vehicle thefts and the evolving methods criminals use are a huge problem, and we’re seeing more and more issues with keyless thefts and relay attacks, which can leave drivers without their vehicles and facing higher insurance costs on top.
Preventative measures, like immobilisers, GPS trackers, and even simple signal-blocking key pouches, are becoming increasingly important, alongside commercial vehicle security solutions such as slam locks and specialist deadlocks for businesses.’
Why Collaboration Across the Motor Industry is Key to Making Improvements
The FCA report has also determined that complexities within the claims processes insurers use are increasing costs, with multiple third parties often involved, such as claims management firms and credit organisations, which increases the time taken to resolve a claim and the overall expenses incurred.
In response, the taskforce is looking for ways to streamline claims handling, reduce unnecessary referrals and improve efficiency in the car insurance sector. While the report sets out a range of proposed actions, priorities include:
- Improving the number of skilled repair technicians to reduce delays
- Addressing supply chain problems that are impacting the availability of parts
- Rethinking how claims are managed to limit third-party involvement
- Tackling criminal access to the tech that is used in many vehicle thefts
- Enhancing fraud detection and increasing penalties for fraud
A more cohesive approach from insurers, manufacturers, and vehicle security specialists is seen as beneficial to all, while Eydens has noted that prevention and earlier intervention when cars are at risk of theft could play a significant role in limiting the volume of claims and the onward costs.
Supporting Motorists Coping With Insurance Affordability Issues
The FCA has emphasised that coordinated action is needed to stabilise insurance costs over the long term, and Eydens Auto Locksmiths and Vehicle Security comments that better driver awareness should be a priority, along with regulatory and industry reforms.
Rob adds, ‘Steps to improve vehicle security and mitigate theft risks can ease the upward pressure on premiums, and our advice is always for drivers to take action to protect themselves, whether by staying informed about common theft methods, or investing in additional vehicle security.’
Following the taskforce’s launch in October 2024 and its latest update in December 2025, the FCA has confirmed that it plans to continue collaborating with the taskforce and other industry stakeholders to keep monitoring car insurance costs and improving the accessibility of premiums for UK drivers.
Read more about Eydens Auto Locksmiths and Vehicle Security - Leading auto locksmiths, Eydens, celebrate sharp drop in vehicle crime
About the company: Eydens Locksmiths and Security have over 20 years of experience providing professional, fast and reliable locksmith and security solution services to residential and commercial clients in Coventry, Rugby, Nuneaton, Bedworth, Kenilworth, Leamington, Stratford upon Avon and Warwick, and are members of the MLA.
Contact Info:
Name: Rob Eyden
Email: Send Email
Organization: Eydens Auto Locksmiths and Vehicle Security
Website: https://eydensautolocksmiths.co.uk/
Release ID: 89196360
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