UK car insurance companies charge more for less coverage, exploiting consumers.
In the UK car insurance market from 2012-13, companies charged higher prices for basic third-party insurance compared to comprehensive insurance, which includes third-party coverage. Some companies also charged more for comprehensive policies with higher deductibles. This suggests that consumers may not fully understand their options, and insurance companies may not be following standard practices. This shows that the UK car insurance market is not as advanced as economic theory suggests.