Brits Looking To Switch On Car Insurance
A growing number of Britons are switching car insurance providers in an effort to combat the rising costs of premiums, a new study has suggested.
More than six million UK car-owners are said to have switched to a cheaper deal in the past six months as the cost of repairs and replacement drive up the average cost of cover, according to price comparison service MoneyExpert. In a study recently carried out by the group, 14 per cent of 2,051 respondents said that they had changed supplier in order to combat rising insurance costs - a figure which would amount to 6.43 million people if extrapolated to represent the total UK population. The firm reports that on average there are as many as 35,000 people switching car insurance provider every hour throughout the UK. Much of the rise in the number of people seeking new policies is attributed to the way in which providers pass on the costs of claims compensation on to existing customers while giving new customers more favourable headline deals.
Sean Gardner, founder of MoneyExpert, explained: “When it comes to car insurance, loyalty does not pay. The only way that car insurance companies can offer discounts and incentives to attract new business is by passing on the extra cost to their existing customers. With over 35,000 people switching car insurance provider every hour it seems that the nation is catching on to the situation and voting with their feet. These days you can compare quotes in seconds online so no wonder millions are now taking advantage of the financial benefits of switching car insurance.”
He went on to suggest that the rising costs of living in a constrictive financial environment are encouraging people to make their money to work harder for them when it comes to automotive costs. Money Expert also suggested that middle-aged drivers are the most savvy when it comes to reducing insurance costs, with 17 per cent of 35 to 44-year-olds stating that they had changed their policy.
For those looking to cover the costs of an inflated policy, or even to purchase a new car which would benefit from lower premiums, a secured personal loan may be of assistance in providing the capital to take advantage of cheap deals quickly. Indeed, the study shows that the need to be prudent when considering motoring costs may become more pressing in the future, with further increases of up to ten per cent in the average premium predicted by the firm. According to statistics cited by the group and published by the AA Insurance Index, the average annual bill for car cover currently stands at 682 pounds.
Mr Gardner concluded by asserting that as much as 30 per cent could be saved on the annual bill by regularly looking for cheaper deals. However, while the group asserts that such practices are advisable, consumers should be mindful that it may not always make financial sense to switch provider.
Such news follows statistics from the group published last month which suggested that hundreds of thousands of motorists are putting themselves at risk of substantial fines by shirking their legal responsibility to obtain motor insurance protection. For those who feel that such cover is too expensive, a personal loan may be of assistance in freeing up finances enough to cover the purchase and maintenance costs of a new vehicle.
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