01 November 2006  Competition 'keeping down car insurance costs'
A study has claimed that car insurance premiums are being kept down by competition in the market.

The report by financial products researcher Defaqto states that rivalry between firms in the £17.4 billion car insurance market is keeping the cost of cover down for consumer.

It added that it is now simple for consumers to shop around on the internet to take advantage of discounts and other special offers.

Brian Brown, author of the report, said that the cost for comprehensive cover has not changed significantly in recent times.

"The intense amount of competition in the market at present is keeping comprehensive premiums from rising despite well reported industry views that they must increase," he said.

"The dynamics of the market at present may make it almost impossible to both raise premiums and hold market share," he added

Earlier this month Sainsbury's warned that the increasing cost of motoring could cause an increase in the numbers of drivers on the roads without car insurance.



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