Community car clubs face closure amid insurance crisis

Community car clubs are facing an existential threat in the UK.

With the withdrawal of the last insurance provider covering these groups, up to 40 car clubs across the country are on the brink of closure, potentially leaving many communities without this sustainable transport option.

For years, community car clubs have served as an eco-friendly alternative to individual car ownership, particularly in rural areas where public transportation options are difficult to come by. These clubs, often formed by like-minded neighbours, pool their resources to collectively own and share several vehicles. Members pay a small fee per trip, significantly reducing their carbon footprint and overall transportation costs.

However, the sudden withdrawal of insurance coverage has cast a dark shadow over these initiatives. Chris Wilson, involved in a car cooperative in north Cambridge, expressed dismay over the impending closure of their club due to insurance unavailability, as reported by The Guardian. Despite an impeccable track record with no insurance claims, they have been unable to secure coverage for their vehicles.

The situation reflects a broader trend of increasing insurance premiums and reluctance among insurers to cover unconventional risks, exacerbated by the economic fallout of the COVID-19 pandemic.

Efforts to find a solution have thus far proved fruitless, with appeals to insurers and government interventions yielding little progress. While the Association of British Insurers acknowledges the importance of car clubs, the path forward remains uncertain.

In light of these challenges, some affected groups may need to explore alternatives such as affiliating with larger car clubs like Hiyacar, albeit at potentially higher costs. Nevertheless, the urgency of preserving community car clubs cannot be overstated, especially in the context of climate change commitments and the need for affordable, sustainable transport options.

Image: Canva.

Emma Cockings Emma is a content editor for Claims Media. Emma is a experienced writer with a background in client-centric personal injury for a major firm. She has attended and reported on multiple brokerage events throughout her career.