It looks like a lot of people had car troubles in 2016, particularly when it came to financing and insurance. While total complaints filed with the UK’s Financial Ombudsman Service (FOS) fell 14% in 2016 compared to the previous year, a 64% leap was recorded in terms of complaints about vehicle finance and there was a 38% rise in car insurance complaints specifically.
“Last year 11,844 people got in touch with the Ombudsman about their vehicle policy, up from 8,585 in 2015, making up nearly a third of all insurance complaints,” reported Auto Express.
Meanwhile, there were over 5,000 complaints related to financing. The report said, “The number of people contacting the Ombudsman about a problem with their vehicle finance provider reached 5,029 in 2016, up from 3,072 in 2015.”
Part of the growth was attributed to the rising number of cars bought on finance, which currently accounts for almost nine out of 10 new cars in the UK. The report also cited irresponsible lending practices as a contributing factor.
The motor insurance industry, on the other hand, is said to be in the midst of a period of instability. Factors seen affecting the sector are economics, regulation, and technology.
Article care of http://www.insurancebusinessmag.com
And the orginal article can be found here!
