Motorists urged to shop around

Posted :31-10-2006

Those who have experienced increases in car insurance premiums are being encouraged to shop around for the best deals by product research company Defaqto.

According to new research from the firm, drivers could benefit as competition in the insurance business increases.

In addition, it stated that two-thirds of insurers providing customers with car insurance online offer a discount for those who choose to do so.

"So many insurers are still giving introductory discounts, cashbacks or guarantees to beat other quotes," remarked Brian Brown, head of general insurance at Defaqto.

"There is little if any need for customers to stick with their existing insurer when faced with premium increases."

However, the research also found that companies offering motor insurance often charge administration fees of up to £75 for stopping a policy or changing the customer's address.

The news comes as Lloyds TSB announced that it forecasts a 20 per cent rise in insurance claims as the winter months begin and the hours of daylight decrease.


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