The Office of Fair Trading has announced that it wants the car insurance industry to be studied by the Competition Commission as a result of inflated care hire and repair prices, as it is believe that many insurers are in league with the garages in order to make more money on jobs that are part of insurance claims. The OFT has said that insurers compete in a ‘dysfunctional way’ that does not benefit drivers.Last year premiums went up by approximately £225m, as a result of insurers taking advantage of the at-fault drivers insurers by using referral fees. In many cases the insurer of a driver in an accident will sell their details to a personal injury solicitor who encourages the driver to sue for damages, in exchange for a referral fee. A similar situation arises with repair garages where a garage will be encouraged to increased its repair bill for the at-fault driver in exchange for a fee. With this common practice across the market premiums are forever on the increase. The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article. Setfords Solicitors have lawyers throughout the country, including personal injury lawyers based in London, Kent and Manchester. Please use our lawyer locator to find a solicitor in your area or visit our Solicitors in Manchester page to find out more about our services in that area.