Car Insurance. Look to the Internet for guaranteed savings

It's been a talking point for a few years now, the fact that car insurance premiums have been on the increase. However, at last we have some good news! Car insurance is back on its way down, and it's all thanks to the Internet.The figures tell us all we need to know. The average car insurance premiums was £462.15 in the second half of 2005, this was a drop of £8.02 from the average premium taken from the first half of the year. The group to see the biggest savings is the over-65s, car insurance bought over the Internet has meant savings of 4.5 in the last six months for them, meaning the average premiums have dropped from £347 to £342.We did find, however, that not every single insurer with a website could offer a cheaper deal. The most expensive quote was 40 more than the cheapest quote, which proves that the 50 of motorists who don't even look at the other insurers before they renew their existing policy, could well be paying significantly over the odds. In fact, only 31 of motorists get quotes from other insurers at renewal time. 19 of motorists get one more quote to make a comparison but no more than that.And you could be forgiven for thinking that the big-name insurers would be the cheapest. However, a recent survey carried out by ‘Which’ the consumer magazine found that the most popular insurers were not the cheapest. Norwich Union, for example, was not the cheapest insurer in any of a total of 36 driver categories. Another big name, Direct Line, only managed to get one first place.The big brand names have a good marketing strategy, which ensures that they stay at the top of their game. They entice new customers in with promises of low premiums, unbeatable service and benefits and, relying on the knowledge that half of motorists renew their existing policy without looking elsewhere, they then starts gradually increasing their prices. It obviously works!We do advise when looking for new insurance that you look at more than the cost. Just because the insurance is the cheapest on the market, it doesn't mean that it's the best one for you and your needs.It all comes down to the benefits. You may be used to having a courtesy car if your car needs to be repaired. You may have a costly sound system, and then find that you are only covered for up to £100 if the sound system gets stolen or damaged. You will also find that some insurers do not cover personal belongings left in the car. Most importantly, you need to make sure that you choose a policy that enables you to drive someone else's car and still be covered on a third-party basis. Not all insurance policies offer this benefit.So it's things like this that you need to consider, as well as the price.Price is of course very important. And you will find that if you can buy over the Internet, you will save money. Even with the big-name insurers, you can save around 5-10 compared to buying over the phone.We think that the best way to buy online is to go to a broke that will give you a number of online quotes. Go through the list of quotes, starting with the cheapest, and check the small print to see if the cover is sufficient. If not, try the next one until you have found the best policy at the cheapest price. Try searching on ‘cheap’ or ‘discount’ car insurance, rather than ‘car insurance’ for a more specific search.Above all, we say always check out the competition before renewing your existing policy. It really is worth it. I had to renew my insurance a couple of weeks ago, I was offered £733 with my existing insurer, and within 30 minutes, I’d managed to get a quote for £527 with another insurer. I saved £206 - not bad for 30 minutes work!

Comments? Questions? Email Here

© HowtoAdvice.com

How to Advice .com