Dispatches’ latest investigation may spell trouble for insurers nationwide. Channel 4’s most lauded investigative television show has been burrowing into the heart of the motor insurance industry in an attempt to find out the extent to which insurers and accident management companies are able to influence the workflow and profit margins of body shops and car repair garages.
After having been shown the Retail Motor Law report which outlines agreements that certain manufacturers and distributors of paint enter into with insurers, Dispatches decided to investigate the matter further, finding that some insurers are indulging in disreputable practices which result in artificial increases to drivers’ premiums.
How are Insurers Increasing Our Premiums?
Dodgy practices may include:
- Not presenting customers with a choice of body shops, thereby steering them into using only their pre-approved network.
- Keeping repair costs as low as possible for ‘at fault’ accidents in which they are liable for paying the bill for fixing your car.
- Hiking up the cost of repair if another insurance company is footing the bill.
In response to these allegations, The Office of Fair Trading has condemned the entire motor insurance industry, labelling it dysfunctional and referring the matter to the Competition Commission. The CC has stated in response to the Dispatches investigation that this is another avenue which they will also take into consideration during their assessment of the entire motor insurance industry.
Angry Reactions from Insurance Companies
The main point of contention which has been raised in response to the Dispatches programme has come from insurers, who claimed that the C4 watchdog have oversimplified a complicated issue. However Andrew Moody, MD of Retail Motor Law, has explicitly stated his concern about the way car repairs seem to be dictated by insurers.
Get Savvy about Car Insurance
Consumers need more than ever to be aware of the hidden costs or consequences of choosing a particular insurance company, and of their own rights when making a claim for car insurance. Sound advice would be to conduct a thorough assessment of an insurance company before signing an agreement, or to choose an insurance company which has been recommended to you by someone with prior experience of their service. For advice about reliable insurance in the UK get car insurance northern ireland @ www.autoline.co.uk, Ireland’s premier car insurance company.