Friday, September 26, 2014

Car insurance industry faces shakeup over price comparison websites in UK

Exclusive car insurance deals made between price comparison websites and insurers will become a thing of the past after the UK competition regulator ruled that these were not doing drivers any favours and should be banned.

The ruling was one of a number of measures recommended by the Competition and Markets Authority in its final report into the £11bn private motor insurance market.

It said some price parity clauses in contracts between price comparison websites and motor insurers were preventing insurers from making their products available more cheaply on other online platforms. This, it said, had the effect of restricting competition and leading to higher car insurance premiums overall.


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