Car Insurance Costs to be Investigated
While most people are happy to pay a little bit extra to get an extended auto warranty, the price of car insurance premiums seems to be doing nothing but go up and up and up - so much so that the car insurance industry is now set to be investigated by the Office of Fair Trading to see just why the price of auto insurance seems to be so very exorbitant these days.
Evidence indicates that the cost of an average car insurance premium increased by as much as 12% between 2009 and 2010, and then again by another 9% in the first three quarters of this year. The Office of Fair Trading is quoted as saying that there may be "features of the UK's private motor insurance market that restrict and distort competition relating to the provision of third party vehicle repairs and credit hire replacement vehicles to claimants," something which then results in increased costs.
The analysis of the Office of Fair Trading also shows that the price of car insurance in Northern Ireland is often even more expensive than it is in the rest of the United Kingdom. In England, Scotland and Wales, the average premium is around 11% less expensive than it is in Northern Ireland.
"Our call for evidence has enabled us to gather information swiftly and efficiently so that we can now focus on specific features of the market that we are concerned could be restricting or distorting competition" says the Senior Director of Services for the Office of Fair Trading's Infrastructure and Public Markets, Sonya Branch.
published: 16/12/2011 14:00:00