Car insurance firm market probe
The Office of Fair Trading (OFT) is to refer the private motor insurance market to the Competition Commission for practices that, it claims, drive up the cost of premiums.
'Dysfunctional insurance practices cost drivers £10 per policy'
Here are some statistics from the Office of Fair Trading investigation into dysfunctional practices in the motor insurance industry:
- Practices cost insurers £225 million in 2011 - or £10 per policy for the consumer
- Insurers get "kickbacks" of £250-400 from credit hire firms
- Average cost of a courtesy car is £560 higher when the insurer of the not-at-fault driver chooses the supplier
- Average cost of repairs was £155 higher when the insurer of the not-at-fault driver is in charge
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Anger as report reveals motor insurance costs
A road crash can have big financial impact - but new evidence suggests the insurance firms meant to protect us, are adding to the costs.
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The motor insurance industry accused of rip-off
"Dysfunctional" practices in the motor insurance industry are pushing up premiums by £225 million a year, despite attempts to blame drivers