Warning over car insurance price hikes

Wed, 01 Nov 2006

UK motorists have been warned that they may be able to find a better deal if facing rises in their car insurance premiums.

The proliferation of the internet has meant that consumers are now able to find better deals more easily on their car insurance, which could mean that firms raising their premiums find it "almost impossible" to maintain their market share, Defaqto has claimed.

Additionally, the consumer advice service stated that two-thirds of online car insurance providers offer discounts, while some insurers offer cashback deals to motorists.

Brian Brown, Defaqto's head of general insurance research, said: "The intense amount of competition in the market at present is keeping comprehensive premiums from rising despite well reported industry views that they must increase."

"With the internet it is now so easy for customers to shop around … there is little if any need for customers to stick with their existing insurer when faced with premium increases."

Richard Mason, director of insurance at Moneysupermarket.com, recently described Norwich Union's decision to raise car insurance premiums as "a slap in the face for safe drivers".


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