Car Insurance. Premiums driven down by the Internet.
Summary
The Internet is having a big effect on the price of car insurance. But it still pays to shop around.
Author: Michael Challiner
After so many experts have warned us that the cost of car insurance
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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. ( pet insurance ) 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 ( unsecured loans ) 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. ( travel insurance ) 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 ( medical insurance ) price isn't everything. Some policies have mouth-wateringly low prices but skimp elsewhere.