Competition keeps policy prices down

Posted :26-01-2005

Competition in the car insurance market is greatly benefiting consumers, a new study has claimed.

Research by independent market analyst firm Datamonitor has revealed that the average comprehensive car insurance policy now costs £750 and that the market is more favourable to consumers than ever before, the Mirror reports.

"Premium rate rises of 20 per cent plus, as seen several years ago, are a thing of the past," said Datamonitor's James Greenwell.

Although seven out of ten car insurance policies are still sold over the phone, the proliferation of the Internet has helped open up choice to consumers, making it easier for the UK's 28 million motorists to compare policies.

The study revealed that the number of vehicles in circulation in the UK increased by only two per cent in 2003.

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