Online insurers drive down premiums

ONLINE car insurance quotes are 8.2% cheaper than those obtained by telephone, according to a new study.

Research firm Consumer Intelligence found that last year around 10.4m motorists bought car insurance over the phone. If they had purchased their cover through the internet, they could have saved up to £379m in premiums.

Consumer Intelligence found that the average car insurance premium when purchasing online is £404.98 compared with £441.32 when bought over the telephone.

Last year, 53.1% of motorists purchased their cover on the phone and only 33.4% did so online. Yet the survey found that 70% of car insurers offer online discounts.

Two in five insurers offer online car insurance premium discounts of 10% or more. Consumer Intelligence managing director Ian Hughes said: 'The number of motorists purchasing cover online is growing rapidly. Last year, around 33% of all car insurance policies were bought online compared to 22% in 2003.

'The car insurance market is already very competitive and over the last few years there have been a number of internet-only car insurance offers, but our research shows that it is the leading brands that are most likely to offer the best value online.'