This note outlines some of the factors influencing the cost of motor insurance premiums and what government and the industry have done to try and reduce costs.
Jump to full report >>This note outlines some of the factors influencing the cost of motor insurance premiums and what government and the industry have done.
The market for motor insurance is seen by many as being dysfunctional. Premiums rise and fall sharply and unpredictably. Fraud against the industry is widespread but the relationship between the industry and car hire and repairers and legal claims firms seems equally dubious. For these reasons the industry has attracted the attention of public opinion, the competition authorities, and government and Parliamentary enquiries.
Reforms have focussed on
Another standard note (SN/HA/6015) deals in detail with the issue of referral fees.
Commons Briefing papers SN06061
Author: Tim Edmonds
Topics: Financial institutions, Financial services, Roads
The House of Commons Library provides research, analysis and information services for MPs and their staff.