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According to the latest market research from Mintel, 10% of us
now buy our car insurance online, making it by far the most popular
online financial purchase. But while researchers think this figure
will double to 20% over the next year, one insurer reckons it won't
be long before the Internet replaces the telephone as the most popular
way to get insured.
elephant.co.uk was the UK's first completely online car
insurer, and 96% of the quotes it provides are over the Internet.
It believes it is only a matter of time before the Internet becomes
the nation's favourite way of buying car insurance.
Managing director of elephant.co.uk, Tanzie Oliver, explained:
"Buying insurance on the Internet is faster, more convenient
and, most importantly cheaper than buying insurance over the phone.
Consumers like the fact that you can compare prices quickly over
the Internet, while the lower overheads of selling online mean that
insurance companies can offer cheaper premiums for policies sold
this way."
The UK already leads the rest of Europe in buying financial products
online, British motorists buy more than half of all the insurance
policies sold online in Europe. In fact over 2 million of us did
so last year.
According to Mintel 10% of all motor insurance policies were purchased
via the Internet last year and it predicts it could reach 20% by
this time next year. It also estimates the market will be worth
£1.04 billion this year and that it will be worth £1.5
billion in 2008. This may sound a lot but elephant.co.uk
believes this growth will be even faster.
Tanzie Oliver, said, "Until fairly recently motorists have
used the Internet mainly as a source of information; comparing quotes,
but still buying over the phone. But every month it seems that more
and more customers are comfortable actually buying online and realising
the benefits it offers. Most insurers give at least 5% discount
to people who buy their insurance online."
elephant.co.uk has grown by over 100,000 customers itself
in the last year, and now insures nearly 300,000 motorists. However
even it realises not everyone is happy buying insurance online.
It offers its customers the opportunity to get a quote online and
then telephone to actually buy the policy. Although only 4% of its
customers actually do that.
According to Mintel's research, men are 50% more likely to buy
it online than women and overall the under 25s are twice as likely
than average to. Only 1% of the over 65s bought their car insurance
online last year.
Issue date: 12-07-04
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