Competition Commission announces motor probe details

The Competition Commission has said it will focus on repair costs and aggregator clout as part of its probe into the UK motor market.

The commission was originally called on to investigate motor in September by the Office of Fair Trading, whose earlier probes found that the “dysfunctional” market raised premiums by £225m last year, or £10 per driver.

The commission has published documents stating how it will carry out its review and what it will investigate, including:

• If some repair firms’ relationships with insurers hike costs for rival insurers.
• If add-on products are sold on the back of private motor insurance.
• The relationship between insurers and parts/paint providers.
• Whether consumers are ripped off by firms offering services after a motor accident.
• Whether the largest aggregators have market power and how this affects consumers.
• How automatic renewals and cancelations affect no claims bonuses.

The commission will carry out investigations and ask for information before publishing its provisional findings next September.