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 Cyclist who knocked down three-year-old girl says his life has been 'destroyed'
- 2 A politically correct lefty goes to see Top Gear live – you'll probably believe what happened next
- 3 Young Preston fan has play-off hero Jermaine Beckford's shirt stolen from him at Wembley - which then appears for sale on Gumtree
- 4 Isis burns woman alive for refusing to engage in 'extreme' sex act, UN says
- 5 Puerto Rico, island of lost dreams: People are leaving the debt-hit territory in droves as near neighbour Cuba's star rises
As a white man, I'm surprised more women aren't tweeting the hashtag #KillAllWhiteMen
Scotland may have to leave the EU even if it votes to stay in, David Cameron confirms
The day that Britain resigned as a global power
SNP fury as HS2 finds 'no business case' for taking fast train service to Scotland
EU referendum: David Cameron's rules are a 'democratic disgrace', says French-born Scottish politician set to be denied a vote
A nation of inequality: How the UK is failing to feed its most vulnerable people
iJobs Money & Business
£40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...
£45,000 - £55,000: Neil Pavier: Are you looking for your next opportunity for ...
£45,000 - £55,000: Sheridan Maine: Are you a newly qualified ACA/ACCA/ACMA qua...
£50,000 - £60,000: Laura Norton: Are you looking for an opportunity within a w...