What happened after so many experts told us that the cost of car insurance was going up? It's dropped! It's mostly because more and more people are shopping online.
In the second half of 2005, the average car insurance premium dropped from GBP470.17 to GBP462.15. But the ones who have gained the most are the silver surfers. During the last half of 2017, the average premium for drivers over 65 went down by 4.5 percent, from GBP342 to GBP347. The things that surprise me the most are...
What happened after so many experts told us that the cost of car insurance was going up? It's dropped! It's mostly because more and more people are shopping online.
In the second half of 2005, the average car insurance premium dropped from GBP470.17 to GBP462.15. But the ones who have gained the most are the silver surfers. During the last half of 2017, the average premium for drivers over 65 went down by 4.5 percent, from GBP342 to GBP347. The biggest surprise is how much the premiums vary from one provider to the next. Most of the time, there is a difference of 40 percent between the most expensive and the least expensive.
Most drivers don't seem to know this, since every year, half of them automatically keep their insurance with the same company. Another 19% only bother to get one quote from different companies.
And people will be surprised to find out who sells the pricey policies. Which, a consumer magazine, did a survey of 36 driver categories and found that Norwich Union, the largest insurance company in the UK, didn't come out on top in any of them. Another well-known name, Direct Line, only got one top spot.
This is because of how the big brands market themselves. They attract customers with low prices and a lot of advertising, and then they slowly raise prices. They are clearly counting on their clients' lack of interest and loyalty to the brand to keep them. And since 50 percent of them keep coming back, it works!
But be careful if you decide to shop around. Price alone isn't everything. Some policies have prices that make your mouth water, but they skimp in other ways.
For example, do you want a rental car while your car is being fixed? Some insurance policies only pay up to about GBP100 for stolen audio equipment. Is that all? Do you want to make sure that your things are covered while they're in your car? And, most importantly, some full coverage policies won't cover you if you drive someone else's car, even with their permission.
Before making a choice, you should think about all of these things.
But getting back to price, you're right if you think prices are lowest on the Internet. Quotes over the Internet are usually 5 to 10 percent cheaper than quotes over the phone.
Most people who shop on the Internet look for the cheapest quote and then read about the cheapest policy to make sure it covers what they need. You can look for the best deals by searching for "car insurance," but "discount car insurance" or "cheap car insurance" is a better way to find some discount insurance sites.
But please remember to shop again when it's time to renew. Don't just keep paying! I found out this year that it's so easy to do on the Internet. My old insurance company quoted me GBP945, but I bought it for GBP702. A GBP243 savings for 30 minutes of work.
