The Competition and Markets Authority (CMA) has published a final order, which sets out how changes resulting from its investigation into private motor insurance will be introduced and monitored.

The CMA has banned agreements from 19th April 2016 between price comparison websites and insurers. This now means insurers can make their products available more cheaply on other online platforms.

The CMA believes that this ban will enhance competition in the private motor insurance market and reduce car insurance premiums overall.

From 1st August 2016 insurance providers will be obligated to provide information to customers regarding no-claims protection when purchasing insurance so they can make an informed choice before purchase.

The information to be included is:

  • The “implied” price of the protection, i.e. the difference in premium if they do not take no-claims discount protection compared to doing so.
  • The effect that claims will have on the policyholder’s no-claims discount, with and without no-claims protection.
  • Warnings that no-claims discount protection does not protect the overall cost of the policy and that premiums may still increase following an accident, even if no-claims discount protection has been purchased.
  • The average percentage discount scale given to customers in the calendar year that concluded more than one month prior to the no-claims discount protection offer.

If you would like a quote for your car insurance, please contact me and I will be happy to provide this to you.

Tel: 01229 813388  or email