Online car insurance is benefiting from the downturn
The online car insurance industry appears to be benefiting from the ongoing recession as Admiral Group reported profits up 11% at £202.5 million. The figures are slightly above expectations although there was a disappointing 30% fall in profits afforded to the Confused.com website. The last few months have seen a number of car insurance companies withdraw from the insurance comparison sector which had been very much all the rage just a couple of years ago.
While Admiral Group may well have been impacted by the issues at Confused.com there is no doubt that the traditional insurance business has benefited from a return to basics. It appears as though more and more car drivers are looking to shave as much from their car insurance premiums as possible and looking around the industry at companies such as Admiral. Surprisingly, the company expects 2009 to be very similar to 2008, which in the current environment would be a very impressive performance.
Thankfully for those looking towards car insurance, Admiral Group does not expect any significant increases in premiums over the next 12 months which is a welcome break for car owners in the UK. It seems as though the ability to browse the car insurance industry from the comfort of your home 24 hours a day seven days a week is attracting more and more people to the online sector.
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