UK Car Insurance Sector to be Investigated by the OFT

UK Office of Fair Trading launched the investigation of the rising costs of car insurance.

It has been revealed lately that the Office of Fair Trading (OFT) has taken the first step in the fight against the rising costs of UK car insurance.

The "call for evidence" from the OFT suggests that the organisation will investigate the reasons behind significant increases in automobile insurance premiums.

Let us remind that prices on car cover in the UK have grown by more than 40% in the past 12 months alone.

The Office of Fair Trading will make sure that the insurance providers are not colluding and inflating the prices; also, the body will examine the influence of price comparison websites on UK drivers and car cover premiums.

The findings of the investigation are expected to be published this December.

UK drivers and transport organisations warmly welcomed the initiative by the OFT. Ms Louise Ellman of the Transport Select Committee hopes that the "investigation will shed more light on competition within the insurance industry."