Online survey challenges falling rates view with evidence of price rises
Insuresupermarket has challenged the view that the private motor market is softening, with new figures that suggest online prices shot up by 25% over the past six months.
The online insurance pricing engine compiled the data from the 9,000 quotes it supplies to online customers each day.
Insuresupermarket director Richard Mason said: "This new research shows that premiums are not only continuing to rise but are rising at a faster rate. After a spate of new entrants to the market 18 months ago, competition was forcing prices down.
"But now we are seeing an upward trend, due to a number of reasons including the increasing cost to the industry of uninsured drivers.
"Increased consolidation also means that a few big insurers dominate."
The insuresupermarket statistics claimed that the average premium rose from £473.05 to £589.54 over the past two quarters, a figure that contradicts other commentators including the AA, Budget and Consumer Intelligence.
Early indications from the AA were that its quarterly price index due out in the next few days would show a further slight fall in rates.