OFT to investigate rising motor insurance costs
The Office of Fair Trading will consider the role of price comparison sites as it calls for evidence to be provided by the UK private motor insurance industry following reports of rising premiums, and may consider how to improve the market operations.
The review by the OFT follows car insurance premiums rising by as much as 40%, and will see the organisation aim to establish the facts and reasons behind the increase and whether there are consumer or competition issues that must be addressed within the market.
The investigation will also see the OFT examine reports that insurance premiums hare higher in Northern Ireland than the rest of the UK and aim to understand why that is.
Insurers will be asked for their views on a number of aspects including the role of price comparison sites, the provision of car hire replacement vehicles, the user of panels of approved repairers and ancillary products that are sold by insurance companies in addition to motor insurance.
Findings are expected to be published in December.