UK annual comprehensive car insurance premiums have risen by as much as 40% in the year ending March 2011. The OFT wants to establish the full facts, the reasons behind any increase and whether there are consumer or competition issues that need to be addressed in order to improve the way the market functions.
The OFT is also interested in examining why car insurance premiums in Northern Ireland are significantly higher than the rest of the UK.
Insurers are being asked by the OFT for their views on a number of aspects of the private motor insurance market that may raise competition or consumer issues, including:
- the role of comparison sites
- the provision of replacement vehicles
- use of panels of approved repairers
- ancillary products that are sold in addition to standard motor insurance
The OFT will work with the Ministry of Justice, the Financial Services Authority and other government departments regarding its work. It will gather evidence over the next five weeks and plans to publish its findings in December 2011.
How to cut your car insurance premiums in the meantime
In the meantime while you wait for the OFT to 'investigate' there are ways to cut your car insurance premiums. For full details of how read the following articles:
- How I got my car insurer to waive the 50% increase in my renewal premium
- Top 10 tips to save money on your car insurance