With the payment protection insurance problems still besetting lenders in the UK, it is almost unimaginable that another insurance practice is being called into question. According to the Office of Fair Trading, they have been asked to investigate the skyrocketing cost of motor insurance throughout Britain.
According to the latest figures released by AA, motor insurance has risen more than 40% within the past year which led the OFT to question whether or not consumers are treated fairly and if there is a way to promote competition in the automobile insurance industry.
Efforts are being undertaken throughout the UK to call for a reduction in the cost of car insurance and Northern Ireland, in particular, has extremely high rates. Recently the Consumer Council for Northern Ireland began a campaign calling for a quick reduction in the cost of automobile insurance. They also submitted a formal request to the OFT to investigate the insurance industry in Northern Ireland.
The Office of Fair Trading is paying special attention to how price comparison websites impact which insurance policyholders by as well as how the industry approves repair shops. The OFT will also look at supplementary insurance products sold alongside standard issue car insurance.
With so many lenders being ordered to pay hundreds of millions of pounds to consumers over mis sold payment protection insurance, this particular issue will not go away lightly. UK consumers are already up in arms over having been mis sold loan insurance so that a 40% increase in the cost of motor insurance within just one year is more than many can bear.
If you have a view on any of the questions being asked by the OFT, your participation in their survey is requested. For further information on the how the OFT is handling this situation, you can visit their website for updates as they occur.