Your MONEY: Car Insurers Told to Clean Up Misleading Ads ; CASHPOINT

By Simon Read

MISLEADING car insurance ads are to be outlawed by City watchdogs. The Financial Services Authority found more than half the ads made dubious savings claims.

The watchdog looked at ads from 57 firms flogging car cover in 2006, and discovered a majority were either unclear or misleading. Now it is planning a crackdown, giving insurers just three months to clean up their act or face a fine.

Home insurers, too, came in for criticism as a quarter of their ads were misleading. Travel insurers had the fewest offenders. The FSA's Vernon Everitt said: "Insurers must shape up and ensure that the claims they make don't mislead."

The FSA refused to name and shame the guilty, but said they would expose AND fine them if they didn't sort themselves out by April. Adverts must be clear, fair and not misleading, warned the FSA. The problem ads make sweeping claims about potential savings, but few customers are eligible for the good deals.

This is especially true when it comes to car cover where the cost will depend on the type and age of the motor, as well as an individual's driving record, age, job and where they live.

You'll get a much better idea of the potential savings you can make by using a cost comparison site such as www.confused.com or www.insuresupermarket.com.

(c) 2007 Daily Mirror. Provided by ProQuest Information and Learning. All rights Reserved.