10 January 2008
Online car insurance has dipped in price over the past year, Experian has found.
The data firm's latest online car insurance premiums index found a 0.3% drop in the car cover for October-December last year, when compared with the previous quarter.
Across 2007, a 6.3% increase was recorded - the sharper rise in premiums over the first half of the year somewhat counterbalanced by the steadying of the market in the last six months.
Third party fire, theft and car insurance fell further, with a 2.1% reduction for 2007 against the previous year detected.
However, Experian concluded that this was mainly due to a high-cost car insurance provider dropping out of the market in September 2006 - and that premiums are increasing otherwise.
Commenting on the new figures, Managing Director at Experian Avis Easteal said: "It appears that the previously rising online premiums were finally levelling out in the second half of 2007.
"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."
He added: "Furthermore, the true impact of the floods earlier in 2007 is yet to fully manifest itself in insurance premiums."
© 2008 Adfero Ltd
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