28 June 2007
Quotes for car insurance policies have hit their highest levels in two years, a new report has found.
According to Experian, third party, fire and theft premiums in the intermediary market reached their highest point since 2005, rising to 617, representing a 2.8% increase compared to May 2006.
The global information solutions company also found the average quote for private comprehensive motor insurance has risen by 7.9% since last May, up from 519 to 560.
According to Experian's Motor Insurance Benchmark, third party, fire and theft motor insurance premiums continue to be significantly higher than comprehensive motor insurance premiums.
This is due to the fact that they tend to be related to younger drivers with low or no voluntary excesses, it explained.
David Murby, Managing Director of Experian's Insurance Services division, said: "The last 12 months have seen comprehensive motor insurance premiums in the direct market increase and overtake premiums in the intermediary market.
"Traditionally, premiums in the intermediary market have been higher, but after peaking in February 2006 (reaching 557), they started falling significantly. They passed each other in July 2006, when intermediary premiums were at their lowest.
He went on to explain this was due to the fact that the motor insurance market was currently undergoing a period of change and increased competition.
"The arrival of retailers and aggregator sites onto the market has complicated the picture even further.
"Competition is aggressive and with technological advances and changing consumer needs, the industry is unlikely to settle back into a straightforward situation.
"Information has become key. Motor insurers in both markets need to be able to monitor what is going on in the industry," he added.
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