Consumers hitting the internet in search for cheap insurance

Posted : 10-03-2005

Three-quarters of motorists and homeowners are using the internet to search for cheap insurance and premiums are falling in price, according to new research.

With an increasing number of insurers offering discounts of up to 15 per cent for consumers who buy online, over 75 per cent of consumers are using the internet to compare and contrast premium prices, the AA has found.

"Our research suggests that well over 75 per cent of all customers use the internet in some way to research insurance premiums," said David Tyers, head of marketing at AA Insurance.

"Even those who don't have access to a computer often ask computer-literate friends or family to do the searching for them, but complete the deal offline."

The importance of shopping around for insurance was highlighted by the AA's research which found that with the cheapest premiums falling by two per cent over the last quarter there is now a 35 per cent difference between the average and cheapest quotes.

The proportion of consumers purchasing insurance online is also increasing rapidly. Mr Tyers stated that approximately 40 per cent of all new car insurance policies are arranged online, along with 20 per cent of home insurance cover.

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