The Competition and Markets Authority (CMA) has ordered the Co-op to give clearer insurance quotations.
The CMA had previously ordered all insurance companies to clearly represent the extra charges that go along with the insurance quotes, including addition costs for further protection, including the cost of ‘no claims bonus’ protection.
The Co-op was the only insurance company to fail to meet last August’s deadline.
This failure to meet the required deadline has led to around 120,000 customers receiving quotations that were unclear or incorrect.
Starting from 1 February, the Co-op will give customers two quotations, one of which will contain no claims protection, and one of which will not.
Adam Land, senior director of remedies, business and financial analysis at the CMA, said: “it is very disappointing that a major company such as Co-op Insurance has taken so long to provide this vital information to its customers.”
“Before the order came into force, the price and benefits of NCB [no claims bonus] protection were often unclear to drivers.
“We expect the Co-op to fully comply with the terms of our directions immediately, so that motorists can search more easily for the best deal for them, and decide whether or not they want this optional cover.”
The Co-op has said that the vast majority of its quotations currently provided the required details for no claims protection charges, with a spokesperson saying “for 90% of our new business customers we are already fully compliant with this order.
“We are part way through a major transformation programme, which when complete will allow us to be fully compliant and enable us to provide best in class service to our members.”