Online motor insurance cost ‘falls’

The cost of online comprehensive motor insurance fell by 0.3 per cent during the last three months of 2007, new figures have shown.

According to Experian, the final quarter saw prices decline by 0.3 when compared with July, August and October.

Over the second half of the year, the average broker premium grew at a moderately faster rate than online motor insurance premiums.

Avis Easteal, managing director of Experian’s insurance division, said: “It appears that the previously rising online premiums were finally levelling out in the second half of 2007.

“With the motor insurance industry being as fiercely competitive as it is, the focus on price will increase and it could affect the speed at which premiums increase.”

The findings also show that over the entire year, comprehensive motor insurance actually grew by 6.3 per cent.

A recent study by Britannia showed that motorists are 63 per cent more likely to breakdown on January 2nd.

© Adfero Ltd

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