WHY PROBE CAR INSURANCE?

Q.WHY HAS THE OFT LAUNCHED THIS INVESTIGATION?

A.The competition regulator is concerned that steep rises in car insurance rates in recent years could be due to insurers levying unnecessary charges or selling products wrongly.

Q.WHAT IS THE OFT CALLING FOR EVIDENCE ON?

A.The investigation covers areas where insurers charge motorists additional amounts, such as for replacement cars after accidents, or the use of only approved repairers. It is also investigating whether price comparison websites really do lead to lower costs for motorists, and whether the sale of extra products alongside insurance is being done correctly.

Q.WHY ARE PERSONAL INJURY CLAIMS NOT INCLUDED?

A.The OFT is not covering personal injury claims, such as for whiplash after a car crash, as the government’s transport select committee is already investigating how such claims are affecting motor insurers.