Car Insurance. Premiums Driven Down By The Internet.
Below is a MRR and PLR article in category Finance -> subcategory Insurance.
Car Insurance: How the Internet is Driving Down Premiums
Summary:
Contrary to expert predictions of rising car insurance costs, premiums are actually falling, thanks to the convenience of online shopping.In the latter half of 2005, the average car insurance premium dropped from £470.17 to £462.15. Notably, drivers over 65 benefited the most, with their premiums decreasing by 4.5% from £342 to £327. The most surprising factor is the significant variation in premiums among providers, with differences of up to 40% between the most and least expensive options.
The Impact of Online Shopping:
Many drivers are unaware of these potential savings as half still automatically renew with their existing insurer. An additional 19% only bother to obtain one other quote.A recent survey by "Which?" magazine reveals surprising results about expensive policies. Norwich Union, the UK's largest insurer, didn't top any of the 36 driver categories in the survey. Similarly, Direct Line only topped one category.
Why Brand Loyalty Costs:
Big brand insurers attract customers with low initial prices and extensive advertising, gradually increasing rates over time. This strategy relies on customer apathy and brand loyalty, which seems effective with 50% of consumers automatically renewing.Shopping Smart:
When comparing insurance options, beware of overly low prices, which may come with inadequate coverage. Consider whether the policy includes essentials like a courtesy car, comprehensive audio equipment coverage, and third-party driving cover.Internet Savings:
Online quotes tend to be 5% to 10% cheaper than phone quotes. Most consumers first find the cheapest option online, then check if it meets their coverage needs. Searching for terms like "discount car insurance" or "cheap car insurance" can lead to the best deals.Conclusion:
When it's time to renew, don't just stick with your current provider. Shopping online is straightforward and can lead to significant savings. For instance, I saved £243 by spending 30 minutes online, reducing my premium from £945 to £702.Remember, take the time each year to explore your options and avoid unnecessary expenses.
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