Cut courtesy vehicle costs and get lower premiums
When the worst happens and a courtesy vehicle is required the costs can start to add up for insurers meaning higher premiums for the customer. Replacement vehicles cost UK policy holders as much as 180m a year through higher premiums.
The Competition and Markets Authority (CMA) has said that when insurers provide courtesy vehicles they sometimes use outside companies which is at a higher cost to them than if they had their own fleet. The CMA has said that if insurers have more courtesy vehicles in house that would reduce cost for them and in turn lower customer's premiums.
Alasdair Smith, chair of the CMA private motor insurance investigation group commented,"There are over 25 million privately registered cars in the UK and we think these changes will benefit motorists who are currently paying higher premiums as a result of the problems we've found".
A cap on vehicle costs is being proposed as way of tackling the issue.
Quotes taken from BBC News.
15.06.2014 - MCE Insurance