Online Only Motor Insurance Is Good For Consumers

A report has claimed that companies supplying internet only motor insurance quotes have already forced premium prices down by as much as five per cent.

A leading Accountancy firm says that the new wave of motor insurance providers could provide as much of an upset to the motor insurance industry as the launch of Direct Line. The company was the first to offer motor insurance straight to drivers twenty years ago.

Online motor insurance providers, who carry out all their motor insurance quotes, policy administration and claims handling online have substantially reduced their overheads.

Since the first online only motor insurance provider was launched recently motor insurance quotes have already been forced down by five per cent.

The accountancy firm has warned that the changes could be cause for concern however, as many motor insurance companies cut their policy prices during recent years and so have little scope for a price war. This could mean that many smaller companies will not be able to compete and so may go out of business.

The report contains no sales information and it remains unclear how much market share the new providers have carved for themselves.

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