Sky High Insurance Costs Driving Consumers Up the Wall

There are few types of insurance that are legally necessary in the UK – one can choose whether or not to insure his or her life; the same goes for domestic animals or expensive home electronic equipment. But car insurance is a legal requirement should you drive a vehicle on the roads of the UK – driving without it is tantamount to permissible suicide, and the punishments are severe. Like it or lump it, getting your car insured is a cost of life, and is thus frustrating when things don’t go the consumers’ way.

Recent news that car insurance premiums rose over 5% during 2007 has scared drivers witless, and has doubtless encouraged some to take their vehicle out without having the proper insurance. Research by Sainsbury’s car insurance index also found out the striking difference between average quotes for different age groups: the average quote for those over 50 was £332.80, whilst those under 25 found their premiums an average of a whopping £1,225. These figures are based, of course, on the likelihood of a crash occurring within drivers of that age range, but the price will still be a lot to swallow for younger drivers. Joanne Malone, Sainsbury’s car insurance manager, said “Cover and benefits vary dramatically between insurers but unfortunately, as many as one in five motorists only obtain one quote when they buy car insurance, many saying they can’t be bothered to shop around or that they don’t have enough time to do this.”

Ms Malone is quite right: UK consumers throw a huge amount of money away each year on overpayment in car insurance premiums. In fact, the figure comes out as around £1.9 billion annually, and it makes no sense that consumers are chucking away their cash on overpriced premiums says Tina Shortle, marketing director of switchover.com: “With household bills rising ever higher, it seems crazy that UK consumers should willingly waste over £1.9 billion by sticking with the same old insurer year after year.” There are ways to save money besides switching: adding a spouse to the policy can save a lot of money, and simple things like fitting anti-theft devices and parking your car off the road can have a huge effect on the price of the policy. Also, look at exactly what you expect to get from your policy: do you really need a flash courtesy car if your partner has a vehicle that they don’t regularly use? If you live in a city and rarely leave, perhaps you could get by on public transport. Take the train for a change!

Whatever your way of life, if it is essential that it includes the use of a car, just be sure to shop around. A simple web search costs nothing and could save hundreds. Be sure of the type of policy that you need – remember that the law only requires you to have third-party cover, not full comprehensive as some insurers would have you believe – and you’ll soon be driving up the road to a stress-free motoring life.