More than three-quarters of UK home and car insurance customers use the web to research the market, it was reported this week.

Research published by the AA (Automobile Association) also found that competition between online insurers was keeping premiums competitive.

David Tyers, AA head of marketing said:

“Our research suggests that 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.”

In the UK, about 40% of all new car insurance and a fifth of home cover is now arranged online.

Last year, online sales of car insurance grew by nearly two-thirds (64%) while online home insurance sales grew by 50%.

In 2004, the average quoted car insurance premium fell 2%, widening the gap between the cheapest and dearest to 35 percent.