Which? executive director Richard Lloyd said:
“For too long consumers have suffered above inflation increases on their car insurance premiums without seeing increased benefits to their policy. Rather than rewarding people for their loyalty, consumers are regularly hit with much higher renewal rates.
“The Office of Fair Trading’s decision to refer the motor insurance industry to the Competition Commission is a much needed step in the right direction. The Competition Commission must now conduct a thorough investigation without delay and look at all aspects of the industry to put an end to bad practices and give consumers a better deal.”