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| Replacement car charges capped in move to bring insurance premiums down | |
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| The cost of replacement vehicles given to drivers after accidents is to be capped to cut motor insurance premiums. | The cost of replacement vehicles given to drivers after accidents is to be capped to cut motor insurance premiums. |
| Britain’s competition watchdog claimed that the charges currently being passed on to insurers are costing consumers £180 million a year as it unveiled the latest pack of measures to reform the £11 billion private motor insurance market. | Britain’s competition watchdog claimed that the charges currently being passed on to insurers are costing consumers £180 million a year as it unveiled the latest pack of measures to reform the £11 billion private motor insurance market. |
| Other proposals by the Competition and Markets Authority include a ban on so-called price parity agreements between comparison websites and insurers. These agreements stop insurers from making their products available to consumers elsewhere more cheaply. | Other proposals by the Competition and Markets Authority include a ban on so-called price parity agreements between comparison websites and insurers. These agreements stop insurers from making their products available to consumers elsewhere more cheaply. |
| Simon Douglas, director of AA Insurance, said: “The CMA’s recommendations could wipe perhaps a further £20 or so off the average premium. | Simon Douglas, director of AA Insurance, said: “The CMA’s recommendations could wipe perhaps a further £20 or so off the average premium. |
| “There remains considerable scope to reduce costs to a much greater extent by continuing to address the high burden still borne by car insurance customers of fraudulent whiplash claims, which was outside the remit of this inquiry.” | “There remains considerable scope to reduce costs to a much greater extent by continuing to address the high burden still borne by car insurance customers of fraudulent whiplash claims, which was outside the remit of this inquiry.” |
| Alasdair Smith, chairman of the CMA private motor insurance investigation group, said: “There are over 25 million privately registered cars in the UK and we think these changes will benefit motorists who are currently paying higher premiums as a result of the problems we’ve found. | Alasdair Smith, chairman of the CMA private motor insurance investigation group, said: “There are over 25 million privately registered cars in the UK and we think these changes will benefit motorists who are currently paying higher premiums as a result of the problems we’ve found. |
| "Through the measures we propose to introduce, we will address the problems that stem from those managing the non-fault accident claim having little or no incentive to keep costs down.” | "Through the measures we propose to introduce, we will address the problems that stem from those managing the non-fault accident claim having little or no incentive to keep costs down.” |
| The CMA recommended the Financial Conduct Authority looks further into the sale of add-on products, which are usually sold alongside home and motor policies, credit cards and even holidays. | The CMA recommended the Financial Conduct Authority looks further into the sale of add-on products, which are usually sold alongside home and motor policies, credit cards and even holidays. |
| Despite all of this, prices have finally been falling with premiums down 5.6 per cent during the first quarter and 16.6 per cent over 12 months, wiping £105 off the average cost of a comprehensive policy, which now stands at £531 according to the AA. This is partly due to increased competition among insurers. | Despite all of this, prices have finally been falling with premiums down 5.6 per cent during the first quarter and 16.6 per cent over 12 months, wiping £105 off the average cost of a comprehensive policy, which now stands at £531 according to the AA. This is partly due to increased competition among insurers. |