Car insurance companies 'slashing rates to attract customers'

Insurance firms are desperately trying to attract consumers, an expert believes.

Consumers searching for attractive deals on personal finance products such as car insurance are likely to have many options available to them due to the intense competition between companies in the sector.

That is the opinion of Lindsay Williamson, secretary at the Insurance Society of Edinburgh, who has said that this market - which also includes other areas such as home insurance and travel insurance - is being hotly contested by firms desperately trying to attract customers.

Ms Williamson noted that because organisations are slashing quotes in a bid to gain a share of the sector, individuals may be able to access cheap deals in the near future.

"Most products are very price-sensitive - even commercially, companies are competing in a market now that is probably a bit overcrowded," she explained.

This comes after Aviva revealed last week that it had experienced a 26 per cent rise in its operating profit figures last year.