Car insurance 'eight per cent cheaper' online

Posted :18-04-2005

Motorists can save almost ten per cent on their car insurance premiums by purchasing their cover online, a new study has found.

According to a survey by Consumer Intelligence, the 10.4 million motorists who bought car insurance over the phone in 2004 could have saved a combined £379 million, by purchasing cover over the internet.

An increasing number of people are buying insurance on the internet, with car insurance being the most popular financial services product bought buy online.

However only 33 per cent of people purchased car insurance online in 2004, compared to the 53 per cent of motorists who bought cover over the phone.

The Consumer Intelligence research found the average car insurance on the internet to cost £404.98, compared to £441.32 over the phone, This Is Money reports.

With online car insurance being 8.2 per cent cheaper than the same cover purchased over the phone, Ian Hughes, managing director of Consumer Intelligence, urged motorists to utilise the internet for cheap cover.

"The number of motorists purchasing cover online is growing rapidly. Last year, around 33 per cent of all car insurance policies were bought online compared to 22 per cent in 2003," he said.

Mr Hughes added: "The car insurance market is already very competitive and over the last few years there have been a number of internet-only car insurance offers, but our research shows that it is the leading brands that are most likely to offer the best value online."

NOP World Financial calculates 1.9 million people bought car insurance over the internet in 2004.

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