There's going to be some overhauling in the car insurance market
Things are getting shaken-up in the world of car insurance. Does it mean cheaper car insurance for all? Of course it doesn't. Did you have glue for your breakfast this morning because that's a stupid thing to think.
Basically, the Competition and Markets Authority (CMA from now on) have said that exclusive pricing deals between motor insurers and price comparison websites need to be banned. Basically, because of these deals, insurers are being denied the chance to make their products available for cheaper, elsewhere.
The CMA also noted that consumers need better information on no-claims bonus protection insurance.
This review came about after the Office of Fair Trading asked the CMA to get stuck into the motor insurance market, and after a year of weighing things up, this is what the CMA have come up with.
They say that, because of the deals being struck between insurers and price comparison websites, it is pushing the price of premiums up across the board.
"They certainly help motorists look for the best deal, but we want to see an end to clauses which restrict an insurer's ability to price its products differently on different online channels," said CMA deputy panel chairman Alasdair Smith.
The CMA also tossed some work to the Financial Conduct Authority who should be examining how insurers tell consumers about add-on products to car insurance policies and the like.
"The way motor insurance-related add-on products are sold makes it hard for consumers to obtain the best value," Smith added, with no-claims bonus protection being a particular concern: "We are requiring insurers to provide much better information."
Alas, the CMA said that they weren't able to work a way around the problem of high car hire and repair charges for drivers who were not at fault in an accident.
Fixing that, they say, would require a "fundamental change in the law".