The UK's private motor insurance industry is "not working well for motorists", a report by the Competition Comission has found.
The private motor insurance market in the UK is worth some £11 billion in the UK, but has faced criticism both from motorists and the wider motor industry for what has been seen as dysfunctional business practices.
In 2012, the Office of Fair Trading called on the UK insurance market to make its business more transparent, and asked the Competition Commission to conduct its review.
In particular, the Commission says the process of settling non-fault claims is "complex" and "increases the costs of replacement cars and repairs", resulting in higher premiums for drivers. The report estimates that those costs could raise cumulative premiums by as much as £200 million per year.
The report also noted that too many accident repairs are not completed to the required standard.
Customers also have too little information to hand when being sold add-on products (such as hire cars) by insurance companies, the report found, meaning insurers have a point-of-sale advantage. The Commission says that makes it hard for consumers to identify the best insurance deals.