Figures from Experian show that the average motor insurance premium in the direct market sector has risen by 7.9 per cent in the 12 months prior to May this year and this could be adding to the financial pressures of consumers facing debt management difficulties.
In May 2006 the average motor insurance premium from a direct seller would cost the UK consumer £519, but this figure stood at £560 last month, according to Experian’s latest research.
“The whole motor insurance industry is going through a period of transition and it is not as clear-cut as it was 15 years ago,” said David Murby, managing director of Experian’s insurance services division.
“Competition is aggressive and with technological advances and changing consumer needs, the industry is unlikely to settle back into a straightforward situation,” he added.
A recent report from confused.com suggested that car insurance premiums are altered considerably depending on the precise term an individual uses to describe his or her profession on their application form.