The Office of Fair Trading has been asked to investigate why motor insurance premiums in Northern Ireland is dramatically higher than the rest of the UK.
The Consumer Council has made a formal complaint to the OFT after its research found the average price of car insurance in Northern Ireland is £920, which is 84% higher than on the mainland. It says the average cost has risen by 70% in just two years.
It's not guaranteed that the OFT will follow-up the complaint as the Council does not have so-called "super-complaint" status.
According to the Council, issues that need addressing include why there are only 15 car insurance companies offering cover in Northern Ireland compared with 51 in the entire UK.
The Association of British Insurers has blamed the price differences on two elements of Northern Ireland's courts. Firstly, personal injury claims appear to get higher payouts in the region. Secondly, Northern Ireland limits small claims court cases to £2,000 compared to the £5,000 in England and Wales. That means insurers trying to recover costs for damage to vehicles are forced into county courts where legal costs are higher.
