Watchdog acts to put car premiums into reverse
Friday 13 June 2014
The cost of replacement vehicles given to drivers after accidents is to be capped in an attempt to bring down motor insurance premiums.
Britain's competition watchdog claimed yesterday that the charges currently being passed on to insurers are costing consumers £180m a year, as it unveiled the latest pack of measures to reform the £11bn private motor insurance market.
Other proposals by the Competition and Markets Authority (CMA) include a ban on so-called price parity agreements between comparison websites and insurers. These prevent insurers from making their products available to consumers more cheaply elsewhere.
The CMA recommended the Financial Conduct Authority, the City regulator, looks further into the sale of add-on products alongside home and motor policies, credit cards and even holidays.
Despite all of this, prices have finally been falling in motor insurance. Premiums were down 5.6 per cent during the first quarter and 16.6 per cent over 12 months, wiping £105 off the average cost of a comprehensive policy, which now stands at £531, according to the AA.
This is partly due to increased competition among insurers. Simon Douglas, the director of the AA's insurance arm, said: "The CMA's recommendations could wipe perhaps a further £20 or so off the average premium."
He added: "There remains considerable scope to reduce costs to a much greater extent by continuing to address the high burden still borne by car insurance customers of fraudulent whiplash claims, which was outside the remit of this inquiry."
- 1 Universities aren't working us hard enough, say undergraduates
- 2 Lego letter from the 1970s still offers a powerful message to parents 40 years later
- 3 To help fuel their propaganda machine against the poor, our government has now decided to redefine the word 'welfare'
- 4 Woman opens professional cuddling shop – gets 10,000 customers in first week
- 5 Grayson Perry: London needs affordable housing because 'rich people don't create culture'
Heroin to be prescribed to Canadian addicts by doctors
Tower Bridge glass walkway 'smashed' by night-time visitor dropping bottle of beer
Charing Cross fire: Station closed and 100 evacuated over blaze on train
Woman opens professional cuddling shop – gets 10,000 customers in first week
Revealed: the case against Bill Cosby – through the stories of his accusers
Rochester by-election: Ukip gains second MP as Tory defector Mark Reckless holds seat
'Beast of Bolsover' Dennis Skinner takes Ukip MP Mark Reckless to task moments after he is sworn in
Rochester by-election: Labour MP Emily Thornberry resigns after posting white van and England flags tweet
France 'blocks' Russian sailors from boarding a warship
Rochester aftermath: Sacking of Emily Thornberry will make work of Labour MPs '10 times harder'
Revealed: How the world gets rich – from privatising British public services
iJobs Money & Business
Competitive + bonus: Selby Jennings: My client, a growing European CIB are loo...
Voluntary Only - Expenses Reimbursed: Reach Volunteering: Age Concern Slough a...
Voluntary Only - Expenses Reimbursed: Reach Volunteering: Crossroads Care is s...
£20000 - £25000 per annum + OTE £35,000: SThree: We consistently strive to be ...