Norwich Union's decision to increase motor rates by up to 40% means drivers could save more money by shopping around, according to yesinsurance.co.uk.
The insurer's decision means motorists could see prices soar by up to 40% on high-risk business, with an average rise of a 16%.
NU said the move was a reaction to the rising cost of claims. It added it was hopeful that other motor insurers will follow suit.
Paul Purdy, of yesinsurance.co.uk, said: “Whilst it is likely that a number of insurers may raise their rates, the new breed of specialist online insurers will use this as an opportunity to widen the price gap between themselves and the rest of the market.
"NU has taken a bold stance in raising its prices and, in the longer term, it is a move that other insurers will also be making. However, in the shorter term, those insurers that manage to hold price increases to a minimum will pick up significant amounts of business as NU policyholders shop around when their policy comes up for renewal."
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