After so many experts have warned us that the cost of online car insurance is on the rise, what’s happened? It’s fallen! Basically it was brought about by the influx of online shopping.
In the second half of 2005 the average car insurance premium fell from £470.17 to £462.15. Most likely it will the silver surfers who’ll be benefited the most. During the last six month of last year, drivers over the age of 65 have seen their average premium go downhill by 4.5% from £342 to £347. What is most surprising are the huge differences in premiums between providers. A figure difference of around 40% between the most expensive and the cheapest are well very commonplace.
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 where the consumer magazine shows that Norwich Union, UK’s biggest and largest insurer failed to come up in any of the 36 driver categories surveyed. Direct Line, one of the most renowned name, only managed one top spot.
This is down to the marketing strategies of the big brand names. They have ben promoting and building up their client base vigorously with low prices and massive ads and then gradually increase the price as the hype dies down. In order to keep their valued customers, they rely on apathy and brand loyalty. And with 50% automatically renewing, it works!
But if you decide to shop around, be careful. A low price isn’t everything. Certain policies have very enticing low priced offers but rather skimp elsewhere.
For example, when your car is being repaired, do you want a courtesy car? Most insurance policies are able to pay only AUD $300 or so for theft of car audio and accessories. Is that comprehensive? 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 finally decide which to choose, it’s wise to consider all these factors.
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 online car insurance”.
Always bear in mind though, when renewal time comes around go shop for another once again. Never opt for auto-renewal! 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 savings of $243 for 30 minutes worth of work.
Learn more and get your Online Car Insurance Quotes today.
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Tags: Automotive, car insurance, Cars, online car insurance, Online Car Insurance Quotes, Online Insurance