The Competition Commission has found that the car insurance market in the UK is “not working well for motorists”; the provisional findings following an investigation into the £11bn industry.

The Competition Commission will now look at ways to reduce premiums. It has provisionally found that the complex chain for the settlement of non-fault claims increases the costs of replacement cars and repairs which in turn is passed on to the insurers of at-fault motorists. This results in higher motor insurance premiums for all drivers.