Comparison sites help kerb record insurance premium inflation

Hayley Parsons, Chief Executive of leading insurance comparison website Gocompare.com, comments on increases in car insurance premiums highlighted by the AA's premium index: "The AA's latest Insurance Premium Index paints a bleak picture for motorists. Insurers hiking premiums by record amounts, escalating claims costs in the industry and the spectre of insurance fraud on the rise, which in turn will mean further increases for drivers down the line.

"These increases are likely to infuriate drivers when they are passed on via their renewal quote. Our advice to motorists is; "Don't get mad, compare". According to independent research issued last week, the best way to try and peg insurance premium rises is to use a comparison site.

"The "Price Comparison Watch" study carried out by Igo4 revealed that the average "best price" on the big three insurance comparison sites rose by just 0.12 per cent between December 2008 and March 2009. The study concluded that insurer rate increases are not finding their way through to consumers on price comparison sites, as prices remained static through the first quarter of 2009.

"They also concluded that 70 per cent of all new private car policies are now sourced through price comparison sites.

"Those drivers who simply accept their renewal quote this year are likely to feel the full force of an industry being hit from all sides by rising costs. At the very least, using a comparison site allows drivers to compare their renewal quote against over 100 other insurers to see if they can possibly get a better deal."