UK motorists faced with higher insurance premiums as a result of the rates rises that are set to come in should shop around for a better deal if their provider ups their charges, an analyst has said.
A report by market research company Defaqto, entitled "Adapting to Survive", says that despite warnings from Norwich Union in September that it would be increasing its motor insurance premiums by up to 16 per cent, the majority of premiums would hardly change.
As a result, Defaqto has encouraged consumers who are being threatened with increasing premiums to shop around for a better deal.
"The intense amount of competition in the market at present is keeping comprehensive premiums from rising despite well reported industry views that they must increase," said the report's author Brian Brown.
"With the internet it is now so easy for customers to shop around and so many insurers are still giving introductory discounts, cashbacks or guarantees to beat other quotes, that there is little, if any, need for customers to stick with their existing insurer when faced with premium increases."
The motor insurance industry is worth an estimated £7.4 billion in the UK alone.To read more about car insurance and compare quotes, click here.
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