Britain’s insurance industry would have been liable for nearly £2billion in extra costs, which the Government expected would be passed onto customers.
The DfT described the decision to formally remove the impact of the Vnuk ruling from British law as a “clear win for motorists in Britain” and claimed it will protect motorsports.
It stated: “The EU’s rules would have meant any motorsports collision involving vehicles from go-karting to F1 would have been treated as regular road traffic incidents requiring insurance. This could have decimated the industry due to the additional insurance costs of roughly £458million every single year.