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 Australia to impose 24-hour curfew on all cats to protect endangered species
- 2 Model's video shoot on the beach interrupted by sudden landing of a group of illegal migrants
- 3 The difference between a psychopath and a sociopath
- 4 MH370: Boeing 777 wing that could match missing plane found on the French island of Reunion
- 5 'Killer robots' with AI must be banned, urge Stephen Hawking, Noam Chomsky and thousands of others in open letter
Kate Winslet thanked 'particularly horrible' girl who bullied her at school after Titanic success
Israel accused of killing 75 children during day of 'carnage' and war crimes in Gaza war
Australia to impose 24-hour curfew on all cats to protect endangered species
Walter Palmer: Cecil the lion killer revealed to be American dentist
MH370: Boeing 777 wing that could match missing plane found on the French island of Reunion
Yvette Cooper: Our choice is years of Tory rule under Jeremy Corbyn – or a return to a Labour government
Labour leadership contender Jeremy Corbyn says 'we can learn a great deal from Karl Marx'
I am the Jeremy Corbyn supporter that many will tell you doesn't exist
Public anger after French sunbather beaten up by gang for wearing a bikini in Reims park
Labour leadership: New poll shows party is now even 'less electable' than under Ed Miliband
Labour leadership contest: I would never quit the party, says Liz Kendall
iJobs Money & Business
£20000 - £25000 per annum + competitive: SThree: SThree are a global FTSE 250...
£45 - £55k DOE: Guru Careers: A Financial Controller is required to join a suc...
£12500 - £20000 per annum: Recruitment Genius: Scotland's leading life insuran...
£22500 - £24500 per annum: Recruitment Genius: Inbound and outbound calls with...