Price peaks remain remote

Tom Cooper asserts that despite predictions of motor rates increasing, recent analysis of the price comparison site market leaders reveals rates are actually continuing to fall.

Those involved in the car insurance industry that were expecting to see double-digit rate increases in 2009 may be surprised to learn that the average cheapest premium on each of the three leading price comparison sites fell by just under 1% in January. This was one of the key findings of the inaugural iGO4 Price Comparison Watch.

The public appears to have responded in their millions to the recent surge in marketing activity of these providers: close to four million unique visitors searched for six million car insurance quotes across all price comparison sites in January, which represents an incredible 50% year-on-year increase. Many commentators agreed that price comparison sites were accounting for 50% of all new car insurance sales as 2008 drew to a close and the January spike means that, increasingly, price comparison sites defi ne what is the car insurance market. Since its launch in July 2008,

IGO4 has run hundreds of fixed quotes across Go Compare, Confused and Moneysupermarket. The basket of risks has been constructed carefully to reflect both the nature of quotes being generated on these sites and the types of customer most likely to buy — for example, while aggregators attract a lot of quotes from young drivers, this segment does not necessarily make up the majority of sales. The recent advertising of both Confused and Moneysupermarket has focused on the improvements made to their websites and the public appears to have responded favourably to this approach.

If you wish to read more please view the Post Magazine Artile

*Taken from the Post Magazine February 2009