57pc of Car Insurers 'Mislead' Motorists

By TAHIRA YAQOOB

MORE than half of car insurers make misleading claims, the industry's regulator said yesterday.

The firms either exaggerated the savings they offered or failed to tell customers about the small print, according to the Financial Services Authority. It warned that it would fine any companies that had misled the public.

The authority analysed nearly 60 advertising promotions to see whether the prices offered were genuine.

Some 57 per cent of motor insurers and 25 per cent of home cover firms were found to have run 'unclear or misleading' campaigns.

The offenders used marketing lines such as 'save 25 per cent on your car insurance' or 'switch to us and save Pounds 100'. But the authority-found that such offers were often flawed or open to only a few customers. One travel insurer used a picture of a skier to promote a policy that did not include winter sports.

Vernon Everitt, the authority's retail director, said the situation was highly unsatisfactory.

'We expect to see considerable improvement in savings claims promotions as a result of this most recent review,' he added.

(c) 2007 Daily Mail; London (UK). Provided by ProQuest Information and Learning. All rights Reserved.