Motorists Advised To Consider Levels Of Cover When Getting Insurance
Drivers appear to be looking to reduce as much pressure as possible on their finances when it comes to covering their car, new research shows.
In a study carried out by Fairinvestment it was indicated that more than half (57 per cent) of motorists view the cost of a car insurance policy as being the most important aspect to factor in when looking for such a financial product. Meanwhile, the online finance portal reported that a low excess is particularly sought-after by two per cent of respondents, with the same proportion especially wanting breakdown cover to be incorporated into their insurance policy. A reported five per cent view a courtesy car as being the most important thing to be included into motor insurance cover, with two out of 100 people questioned keen on having a discounted rate for their partners. Furthermore, less than a fifth (19 per cent) of people were shown to have concern about the level of insurance which is provided in a policy.
However, for those consumers who lack a comprehensive car insurance policy, it may be possible that they have to finance the cost of repairs to their vehicle by themselves following an accident. In turn, this could have an impact on their ability to manage other commitments on their spending in areas such as personal loans, credit and store cards, mortgage repayments and utility bills.
On the other hand, having cover for driving other people’s cars was not cited by any of those surveyed as an attractive feature to a motor insurance policy. In addition, none of the drivers questioned were shown to have an interest in having a policy which provides a no claims discount. The firm expressed surprise at this last statistic, pointing out that by having a maximum no claims bonus motorists could be able to save a “considerable amount” on their policy.
James Caldwell, director of Fairinvestment, said: “Motorists should be careful choosing their car insurance by price alone, the cheapest car insurance is not always the best and there are other aspects to be taken into consideration.”
He added: “I would advise anybody shopping for car insurance to compare deals not just on price but also policy features, some of which may be outlined in the small print.”
While on the look-out to buy a car, those consumers looking for an effective way in which to make such a purchase might wish to consider taking out a cheap loan. In doing so, borrowers may be able to finance getting the car of their dreams quickly and efficiently. The additional monetary assistance that a loan brings could help Britons to take out a comprehensive and low-cost insurance policy.
Taking out a loan could also be recommended after a recent Post Office study indicated that many Britons could be putting themselves under unnecessary monetary pressure. In the firm’s research it was indicated that around one in three Britons have taken out a life insurance policy from their mortgage supplier while making the application for such a home loan. By doing so, it was indicated that borrowers are adding an extra 2,000 pounds on to costs and are losing out on the most competitive deals on the market.
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