OFT call for evidence on car insurance Significant Auto Insurance

January 8th, 2012 by Matilda Donald

OFT call for evidence on car insurance

Acting on reports that comprehensive car insurance premiums have risen by as much as 40% in a year, the Office of Fair Trading (OFT) has issued a call for evidence.

The watchdog wants to establish the background to accounts of soaring private motor premiums, so it can consider whether further work is needed to improve the way the market works.

Consumer and competition issues will be identified and as part of its work, the OFT says it is particularly interested in examining reports that car insurance premiums in Northern Ireland are significantly higher than in the rest of the UK.

Insurers and others can submit their views on: the role of price comparison sites; the provision of credit hire replacement vehicles to drivers who are involved in accidents that are not their fault; insurance companies use of panels of approved repairers, and ancillary products that are sold by insurance companies in addition to standard motor insurance cover.

In the meantime, the OFT will continue to work with the Ministry of Justice, the Financial Services Authority and other government departments in this area, and will published its findings in time for Christmas.

According to the AAs British Insurance Premium Index, the shoparound average for annual comprehensive car insurance cover rose by 40.1% for the 12 months ending 31st March 2011.

Meanwhile, Northern Irelands Consumer Council claims that premiums across the Province have shot up by almost 73% in the last two years, with younger drivers worst hit and typically paying more than double the price for being legally on the road than in 2009.

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