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Rise in car insurance costs 'leads customers to shop around'
15.07.2008
More customers are looking around for the best car insurance deal as premium prices rise, industry experts have claimed.
Analysis firm Consumer Intelligence has released data that shows a 5.4 per cent increase in the cost of car insurance premiums over the past 12 months.
In a survey of 4,000 consumers, 25.8 per cent said they were planning to renew their cover with their existing provider, which is a drop from 29 per cent at the same time last year.
Ian Hughes, Consumer Intelligence's managing director, said: "These results show that at the same time as insurance companies are trying to improve their margins, consumers are busy tightening their belts."
He added that the result was that consumer loyalty is "falling."
Meanwhile, recent research from Tesco has shown that one in ten motorists have never switched from their car insurance provider for over ten years.
The survey showed that 36 per cent of respondents had stayed with their current provider for three years or more.
Analysis firm Consumer Intelligence has released data that shows a 5.4 per cent increase in the cost of car insurance premiums over the past 12 months.
In a survey of 4,000 consumers, 25.8 per cent said they were planning to renew their cover with their existing provider, which is a drop from 29 per cent at the same time last year.
Ian Hughes, Consumer Intelligence's managing director, said: "These results show that at the same time as insurance companies are trying to improve their margins, consumers are busy tightening their belts."
He added that the result was that consumer loyalty is "falling."
Meanwhile, recent research from Tesco has shown that one in ten motorists have never switched from their car insurance provider for over ten years.
The survey showed that 36 per cent of respondents had stayed with their current provider for three years or more.