Online car insurance cost falls

Thu, 10 Jan 2008

The cost of online car insurance has fallen for the first time in two years, a new study has revealed.

The research, carried out by Experian, found that the cost of online, comprehensive car insurance had fallen by 0.3 per cent during the last quarter of 2007 when compared to the three months before.

However, it also said that the cost of online car insurance had increased by 6.3 per cent in 2007 when compared to the previous 12 months.

And Avis Easteal, managing director of the company's insurance services division warned that car insurance premiums could be set to rise in the coming year as insurers looked to pass on the cost of claims generated by last year's flooding .

But, he added, the car insurance market is "highly competitive" and, if prices do increase, people will start to shop round for cheaper car insurance quotes .

Mr Easteal also said that the availability of cheap car insurance would be adversely affected by the increase in the number of accidents over the winter period.

Recently, Norwich Union said that people could knock around ten per cent of their premium by getting their car insurance online .
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