ECONOMY

Car insurers enter fierce rates battle

Major insurance companies are proceeding to premium cuts for car insurance due to the economic crisis — which has brought about a drop in turnover — as well as the intense competition in the sector and the increase in the number of uninsured vehicles.

Rate reductions start from 5 percent and apply directly to existing packages, and reach up to 20 percent through the promotion of new packages.

The rate war is due to the competition raging on the Internet since Interamerican started promoting ?Anytime on Line,? which offered discounts between 10 and 20 percent. This led to an increase in cars insured from 371,000 to 483,000 within just one year.

In contrast, the market?s main player, Ethniki Insurance, lost some 250,000 vehicles in the same period and is now launching four new packages that carry discounts from 5 to 11 percent.