You are here: Home - Insurance - News -

Motor insurance shows signs of slow down

Written by:

Online motor insurance premiums dipped slightly during quarter four in 2007, the first quarter to see a fall in the average price since 2005, according to research from Experian.

Experian’s Motor Insurance Benchmark revealed a 0.3% fall in the average price for online comprehensive motor insurance during October, November and December in 2007, compared to the previous quarter.

A month-on-month review of 2007 revealed that after an initial increase during the first half of the year, the final 6 months saw the average online comprehensive motor insurance premium become more stable, with the final 3 months recording a slight dip. The year as a whole recorded a 6.3% increase in the average online price compared to 2006.

Over the second half of 2007, the average broker premium increased at a slightly faster rate than online motor insurance premiums. Although online premiums are still higher than in the broker market, the gap is closing fairly quickly.

Avis Easteal, managing director of Experian’s Insurance Services division, said: “It appears that the previously rising online premiums were finally levelling out in the second half of 2007. Broker prices may have remained low in order to compete with online prices, but this can only be sustained for so long and prices started to creep back up in 2007. The last 6 months have revealed a more rapid increase as they attempt to move closer to online levels.

“With the increased chance of road accidents at this time of the year coupled with the problem of uninsured drivers, the average premium will be affected as we move further into the new year.” 


Related Posts


Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co... Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

  • ‘Alarming’ rise in number of young fraud victims by @yourmoneyuk
  • RT @RCIBank: Generation Sensible is the new millennial, with 68% saving money each month by choosing @NetflixUK over nights out . #Celebrat
  • RT @Rob63y: They’re currently doing the same to me 😡😡 happy to take the premium £4500 over the last 2.5 years now twisting moratorium to th…
Read previous post:
PSigma calls for slashed interest rates

PSigma has urged the Bank of England to cut interest rates to offset the deflationary domestic influences on the economy.