Investigation To Be Made Into Insurance Premiums

Saturday, 1. October 2011

Do you feel that your insurer is ripping you off? If you do you’re not alone. In fact the House of Commons Transport Select Committee produced a damning report on the subject recently, giving the cost of car insurance a high profile and forcing the Government to take action. The Cost of Motor Insurance report calls on the Government to force insurance companies to make policies more affordable. To date the Government has ignored this problem and overlooked the fact that premiums have risen by 10 times the annual inflation rate.

In the meantime the Office of Fair Trading has stepped in to announce that it will be investigating the reasons why the excessive increases have been imposed on drivers.

They have suggested that there may be some competition or consumer issues that need to be addressed. They have asked for evidence from insurers, brokers, agents and consumers so if you have had a massive increase in your premium even though your circumstances have remained the same drop a note to the OFT and let them know. By Graham Hill