OFT Investigation into private motor market

An investigation has been launched by the OFT into the private motor market following the sharp increase in premiums over the last year.

The Office of fair trading has called on the market to provide it with information regarding the role of aggregators; the provision of credit hire replacement vehicles to drivers who are involved in accidents that are not their fault; insurance companies' use of approved repairers; and ancillary products that are sold by insurance companies in addition to standard motor insurance cover.

The investigation comes following a rise in car premiums to as much as 35-45% and the OFT has said it wants to establish the full facts, the reasons behind the increases and whether there are any consumer or competition issues that need to be addressed to improve the functioning of the market.

Evidence will be gathered over a five week period and the OFT said it hoped to publish its findings by the end of the year.