The government has announced it plans to scrap the EU Vnuk law which will ensure British drivers avoid paying an estimated £50 annual increase in insurance premiums and save insurers £2bn in extra costs.
The Vnuk law requires a wider range of vehicles to be insured such as golf buggies, mobility scooters and quad bikes.
The law also extends to vehicles on private land, meaning people with a ride-on lawnmower at home would also require insurance where it would have previously not been needed.
Had the EU law been implemented in the UK, it would have meant the insurance industry would have been liable for almost £2bn in extra overall costs.
Since leaving, the government has stated that these measures are “no longer needed”.
Bypassing Vnuk will also protect the existence of the UK’s motorsports industry as with the previous EU rules, any motorsports collision involving vehicles from go-karting to F1 would have been treated as regular road traffic incidents requiring insurance.
The government claimed that this could have “decimated the industry” due to the additional insurance costs of roughly £458m every single year.
Additionally, the government has suggested that by crapping these rules it will save the industry from “potential collapse” and secure “hundreds of thousands of jobs” in the sector in the process.
Grant Shapps, transport secretary, said: “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. 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.”