Shop around to drive down the cost of car cover
THE cost of insuring a car continues to rise, driven ever upwards by tax increases, the rising cost of whiplash claims and repair bills and the desire for insurers to make bigger profit. But shopping around can reduce some of the financial pain.
The latest data from the Association of British Insurers shows that the average price for comprehensive cover is just over £460, the highest figure since it started tracking premiums five years ago.
One way to keep premiums down is to switch insurer every year. Loyalty will only reward the insurer.
Next month is a peak time for motor insurance renewals. It is the month when new number plates are launched and a popular time for car purchases. Kevin Pratt, consumer affairs expert at financial website MoneySupermarket, warns motorists that if they allow their car cover to automatically renew with their existing provider they will miss out on big savings – potentially up to £300 for some drivers.
He says: ‘Any driver renewing a policy will be acutely aware of how premiums have risen. Do not automatically renew with the same insurer without checking what else is available. It is a pound to a penny that if you shop around you will find a firm offering a better price simply to win your business. Then, this time next year, shop around again.’
Motorists are not the only ones to be suffering at the hands of insurers. The typical premium for home insurance has risen by just over 4 per cent in the past year. Again, you are more likely to get a keener price if you shop around.
It is quick and easy to shop online for motor, home, pet and travel insurance. Using a comparison website, you can compare deals and apply for a policy through them.
TOP TIPS
READ small print before you buy. BE AWARE of any excess – the first part of any claim you have to pay.
WHEN buying home insurance, value your contents correctly. One in three households is under-insured.