Last week we announced unscrupulous traders were pushing up the prices of fuel through speculation in the oil and wholesale markets. This week it’s the insurance market found to be ripping off consumers through dodgy dealings.
It’s come to light that some unscrupulous insurance firms are responsible for inflating costs by up to a colossal £200 million a year, according to Telegraph Motoring.
Why can no one just play fair?
Swiftcover.com has been investigating and it estimates that repair work can sometimes be overcharged up to double the market rate.
As well as inflating costs, unnecessary repair work can be carried out and again charged well above the market rate. Another dodgy practice is charging for vehicle storage when in actual fact the cars are being stored free of charge at a residential property.
In some cases, Swiftcover.com says customers have been given replacement vehicles which were not even insured – so they’re not only passing enormous costs, but they’re putting motorists at huge personal risk.
This latest unsavoury look into the insurance industry comes just weeks after the Office of Fair Trading (OFT) provisionally referred it to the Competition Commission for what it called “dysfunctional” behaviour.
The OFT will announce its final decision on whether to refer the car insurance market to the Competition Commission in October, but with honest motorists bearing the weight of unnecessarily high costs we think it’s clear this should be done now.
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