For many potential motorists, car insurance is simply far too expensive. For young people especially, the cost of insurance on a one litre car can run into the thousands, pricing people out of the market. However, it isn’t just young people who are feeling the pinch, with experienced drivers with over a decade’s worth of no claims bonuses still paying huge fees for their insurance.
The Competition Commission Calls For Change
A new study from the Competition Commission has led to the conclusion that motorists are paying too much money for their car insurance because of the complex chain involved with claims. The Competition Commission has announced that the incredibly high premiums paid by motorists are a direct result of the cost of courtesy cars and repairs that are paid for by the motorist who caused the accident. It added that it felt as though many of these repairs were also done to a very low or ‘shoddy’ standard. The commission also stated that it had concerns over how motorists could find the best value insurance product.
To get to these conclusions, the Commission has spent the past year analysing and examining the £11bn insurance industry. It believes that at present there are insufficient incentives for insurers to keep their costs down and that if the market does not improve, people will simply be unable to afford to drive. Over the course of the next year, the Competition Commission will look at ways to fix the market and a report should hopefully be published in September.
The Impact of Price Comparison Sites
In the UK, there are currently 25 million privately registered vehicles and, if insurance companies are failing to repair cars in a satisfactory manner, it could greatly affect the health and safety of a number of road users. This, however, isn’t the only issue and the Commission also believe that price comparison sites aren’t necessarily providing customers with the best possible deal because their sites make it difficult to identify the best value on the market.
It is believed that these sites are often unclear to customers and on occasion fail to make it clear that you may need to pay for add-ons. As well as this, the Competition Commission are urging customers to branch out from these sites and look for bespoke insurance quotes from companies such as One Sure. By examining both options it is believed that you can guarantee competition and ensure that you get the best quote.