Car insurance faces investigation

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DRIVERS who cause an accident often see repair costs spiral as insurers, brokers, care hire companies and repairers pile in – driving up the cost of premiums.

But the gravy train could be heading for the buffers after the Office of Fair Trading stepped in.

The OFT has referred the UK’s motor insurance industry to the Competition Commission for further investigation amid concerns that the market is not working well for motorists.

OFT chief executive Clive Maxwell said: “Competition appears not to be working effectively in the private motor insurance market.

“The insurers of at-fault drivers appear to have little control over the bills they must pay and this may be leading to higher costs for them and ultimately higher premiums for motorists.”