OFT probe into motor insurance market

The motor insurance market is facing an investigation by the Competition Commission after a report found the market was "dysfunctional" and pushed up premiums by £225 million a year.

The report by the Office of Fair Trading (OFT) found premiums paid by drivers are being ramped up because of referral fees and the fact that insurers of at-fault drivers have little control over the way in which repairs are carried out.