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Online car insurance gains in popularity

A recent study has revealed that the online motor insurance industry is booming.

According to figures released by market research company Datamonitor, the number of people purchasing their car insurance policies online has jumped from two per cent in 1999 to 13 per cent last year.

In addition, with the car insurance industry as a whole becoming more competitive, it is likely that the trend will continue as online competitors jostle for custom by adjusting their prices against one another.

This follows a government announcement that vehicle owners will no longer have to queue at the post office in order to renew their car tax.

Transport secretary Alistair Darling unveiled plans this January for electronic vehicle licensing; one of the last public-facing services in Britain's five-year e-government programme to go live.

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