The motor car insurance market is positively lousy with backhanding and dodgy charges, according to recent statements made by the Office of Fair Trading in a recent publication.
Car insurance companies have been complicit in driving costs up for their customers in the form of how much it costs to hire a replacement vehicle, or to repair their vehicle in the first place, the OFT says. Not one of these insurers is prepared to play fair, industry experts say, as any one insurance provider that wants to go straight will be set upon by their rivals like a they were a pack of hungry wolves, pulling them apart with the same tactics they sought to eschew.
John Singleton, chief executive of the OFT, said that insurance providers have become so distracted from providing a competitive landscape in regards to the value and quality of their services that the industry as a whole has truly lost sight of their prim directive: the provision of affordable car insurance rates for motorists. The OFT says that insurers are spending all their time and energy on entering into collusion with car parts suppliers, paint suppliers, repair firms, and vehicle hire companies to ramp up charges through rebates and referral fees that suppliers must pay insurance companies in order to do business with them.
The worst part is that the insurance market has been struggling to turn a profit for years. Even with these increased fees they’re trousering, they’re still operating in the red, but as long as their strategy remains ‘throw everything against the wall and see what sticks’ in order to make money, consumers are set to lose, and lose big.