Motorists should look for cheaper premiums
Published On 31 October 2006
Motorists should avoid rising car insurance premiums with their existing provider and should instead look elsewhere for better value deals, according to a new report.A new study by Defaqto has found that insurance firms which try to both raise premiums and maintain their portion of the market will find it nigh on impossible as consumers shop around elsewhere for a better deal.
The car insurance market is worth in the region of £7.4 billion and Defaqto has highlighted that the two-thirds of insurers who allow customers to buy on the internet offer discounts for doing so.
Brian Brown, Defaqto head of general insurance, 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 and so many insurers are still giving introductory discounts, cashback or guarantees to beat other quotes, that there is little if any need for customers to stick with their existing insurer when faced with premium increases."
The Defaqto report also discovered that around 62 per cent of insurers now charge for policy adjustments while 35 per cent charge for duplicate documents and 66 per cent charge to cancel a policy.
