Car_Insurance._Premiums_Driven_Down_By_The_Internet by MarijanStefanovic

VIEWS: 3 PAGES: 2

									Title:
Car Insurance. Premiums Driven Down By The Internet.

Word Count:
450

Summary:
After so many experts have warned us that the cost of car insurance is on
the rise, what's happened? It's fallen! It's mostly down to the growing
impact of shopping online.

In the second half of 2005 the average car insurance premium fell from
£470.17 to £462.15. But it's the silver surfers who've benefited most.
During the last six months of last year, drivers over the age of 65 have
seen their average premium fall by 4.5% from £342 to £347. What is most
surprising are th...


Keywords:
car,insurance,prices,rising


Article Body:
After so many experts have warned us that the cost of car insurance is on
the rise, what's happened? It's fallen! It's mostly down to the growing
impact of shopping online.

In the second half of 2005 the average car insurance premium fell from
£470.17 to £462.15. But it's the silver surfers who've benefited most.
During the last six months of last year, drivers over the age of 65 have
seen their average premium fall by 4.5% from £342 to £347. What is most
surprising are the huge differences in premiums between providers.
Differences of 40% between the most expensive and the cheapest are
common.

It seems that most motorists are not aware of this as every year, half of
them automatically renew their insurance with their existing insurer. A
further 19% only bother to get one competitive quotation.

And readers will be surprised who sells the expensive policies. A recent
survey in “Which”, the consumer magazine, shows that Norwich Union - the
UK's biggest insurer - failed to come top in any of the 36 driver
categories surveyed. Direct Line, another well-known name, only managed
one top spot.

This is down to the marketing strategies of the big brand names. They
have been building up their client base with low prices and heavy
advertising and then gradually increase prices. They are clearly relying
on apathy and brand loyalty to keep their clients. And with 50%
automatically renewing, it works!

But if you decide to shop around, be careful. A low price isn't
everything. Some policies have mouth-wateringly low prices but skimp
elsewhere.
For example, when your car is being repaired, do you want a courtesy car?
Some policies only pay £100 or so for stolen audio equipment. Is that
enough? Do you want to insure your personal belongings whilst they're in
your car? And crucially, some comprehensive policies won't provide third
party cover if you to drive another person's car - even with their
permission!

Before you decide, it's wise to consider all these aspects.

But going back to price, if you think prices are cheapest on the
Internet, you're right! Internet quotations are normally 5% - 10% cheaper
than telephone quotes.

When Internet shopping, most people look for the cheapest quote and then
read the details about the cheapest policy to check out that they provide
the cover that's needed. You can hunt for the best deals by searching
under “car insurance” but some of the discount insurance sites are more
easily found if you type in “discount car insurance” or “cheap car
insurance”.

But please remember, when renewal time comes around go shopping again.
Don't automatically renew! It's so easy on the Internet as I found this
year. My previous insurer quoted me £945 and I eventually bought it for
£702. A saving of £243 for 30 minutes work.

								
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