Posted by Linda Davidson
The Office of Fair Trading (OFT) is to review motor insurance premiums to determine whether action needs to be taken to drive prices down, which could be good news for owners of caravan taps.
The competition authority is looking for evidence about the market to determine whether additional work needs to be done to make it fairer for consumers.
Its decision follows news that premiums have risen by as much as 40 per cent in the 12 months to April of this year.
After these rises, the OFT is aiming to establish the reasons behind the increase and whether there are any underlying problems that need to be dealt with.
Among the issues that are being explored are the role of price comparison sites, the use of panels of approved repairers and ancillary products that insurers sell alongside standard motor cover.
Earlier this week, Saga warned that many owners of caravan taps are unaware that they may require special travel insurance while holidaying in Britain.
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