Car Insurance. Premiums Driven Down By The Internet.

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.

Article Source: http://www.moneyarticlelibrary.com

Brokers Online are a uk finance site who specialise in Car Insurance and Cheap Life Insurance

Please Rate this Article

5 out of 54 out of 53 out of 52 out of 51 out of 5 

Not yet Rated

Click the XML Icon Above to Receive - Auto Insurance Articles Via RSS!

Additional Articles From - Home | Cars | - Auto Insurance

• Should you risk driving uninsured? - By :
  
• A 3-Step Guide To Evaluate Car Insurance Quotes - By : BrayDobbin Smith
  
• Finding Cheapest Car Insurance - Some Important Tips - By : ken wass
  
• Get A Low Rate Car Insurance Quote For Free! - By : Elizabeth Newberry
  
• Car Insurance Legal Expense Cover – The Policy Essential - By : Adrian Taylor
  
• Gap Car Insurance: Do You Need It? - By : Joseph Kenny
  
• Auto Insurance 101 Explained - By : Joseph Kenny
  
• Car Insurance – Protect Your Second Wife! - By : NamSing Then
  
• 8 Easy Routes to Cheaper Car Insurance - By : Nicholas Hunt
  
• Best Auto Insurance - How To Find It The Right Way? - By : Oliver Turner
  

Related Articles:

• 12- Copywriting Tips To Make Your Advertising More Powerful...
• Crime Prevention Through Environmental Design -CPTED-
• E-Cards- The X-Age medium to express your Emotions!
• Greetings Card – What, When and How :
• Tap The Profit-Power of Drop Shipping to Increase Your Online or Mail-Order Profits...
• School Crossings- The Danger Zone
• Learning Need Not be Elusive or the Sole Responsibility of School
• Why Men Don't Call Back
• How To Increase Response To Your Marketing Efforts by 30% to 100%... Instantly...Using Testimonials
• Credit Cards: Frequently Asked Questions