Skip advert
Advertisement

Car insurance industry faces shake-up

More information for consumers and ban on comparison site deals with insurers

Car insurance comparison sites

Exclusive pricing deals between insurance companies and comparison websites will no longer be allowed, following a ruling by the Competition and Markets Authority (CMA).

The CMA claims that these kind of deals were preventing insurers from offering their products available elsewhere more cheaply.

Following the inquiry, the CMA has also called for better information for consumers on the costs and benefits of no-claims bonus protection.

Advertisement - Article continues below

Death of the tax disc: all you need to know

However, the CMA has ruled out placing a cap on the price of a replacement car and repair charges, which it originally was in favour of.

Alasdair Smith, Chairman of the private motor insurance investigation group and CMA Deputy Panel Chairman, 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.

Met shows the way in £3m uninsured driver purge

“There need to be improvements to the way price comparison websites operate. They certainly help motorists look for the best deal, and this in turn has led insurers to compete more intensely, but we want to see an end to clauses that restrict an insurer’s ability to price its products differently on different online channels. We expect this to lead to greater competition between price comparison websites.”

The changes could help reduce premiums by up to £20, according to the AA. However, the CMA has been criticised over the length of the inquiry and the fact that it has brought about such small gains.

Skip advert
Advertisement
Skip advert
Advertisement

Most Popular

Chinese cars can’t match their European rivals when it comes to engineering
Opinion - Shanghai Auto Show

Chinese cars can’t match their European rivals when it comes to engineering

This new brand of cars might have battery tech on their side, but European buyers want much more than that
Opinion
25 Apr 2025
Leapmotor B05 family hatch on route to the UK with sub-£30k price and 400-mile range
Leapmotor badge

Leapmotor B05 family hatch on route to the UK with sub-£30k price and 400-mile range

The Stellantis-backed brand will launch a Volkswagen ID.3-rivalling small car with almost 20 per cent more range
News
23 Apr 2025
Buying a modern used car for under £10k is almost impossible
Opinion - £10k used cars

Buying a modern used car for under £10k is almost impossible

Phil McNamara discovers that it’s harder than ever to find a good-value car at the affordable end of the market
Opinion
24 Apr 2025