Car insurance competition good news for consumers

27 January 2005 / by None
A healthy level of competition in the car insurance market is good news for consumers, a new study has found.

Datamonitor revealed that the average comprehensive car insurance policy now costs £750 and that the market is more favourable to consumers than ever before.

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

While 70 per cent of car insurance policies are still sold over the phone, the internet is becoming an increasingly important conduit for insurance providers.

There are currently 28 million motorists in the UK.

Datamonitor also found that the number of vehicles in circulation in the UK increased by only two per cent in 2003.

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