Over three quarters of home and car insurance customers use the Web to compare prices according to research conducted by the UK's Automobile Association (AA).
David Tyers, head of marketing, AA Insurance, says: "Well over 75% of all customers use the Internet in some way to research insurance premiums. Even those who don't have access to a computer often ask computer-literate friends or family to do the searching for them, but complete the deal offline."
About 40% of all new car insurance and about a fifth of home cover is now arranged online. Last year, online sales of car insurance grew by nearly two-thirds (64%) while Internet home insurance sales grew by 50%.
Tyers says the growth of online cover is also contributing towards keeping premiums competitive.
The AA, for its part, has introduced new discounts for online customers – home insurance arranged over the Internet attracts a 15% discount while an average 12.5% discount is offered for online car insurance – for higher premiums, up to 15%.