Competition Commission to investigate the car insurance industry

Back in May it was reported that the Office of Fair Trading felt that it was necessary to being an investigation in the car industry amidst fears of unfair competition among repair garages.

The OFT has found that the ‘at fault’ driver of a road traffic accidents, has no way of controlling repair costs or the costs of any hire cars. This may come as a result of garages being encouraged by car insurers to raise their repair costs in exchange for a fee and this is what is leading to high insurance premiums.

The Competition Commission will have two years in which to investigate and report back. The Associate of British Insurers is pleased the report is due to go ahead and believes that finally something may be done about the concerns that the insurance industry itself has had for some time around the controlling of costs. The ABI believed that further regulation is required with a great deal of reform.

It is also hoped that the commission will investigate the selling of policy holders details on to accident solicitors at the time of the accident.

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