Motorists Will Cut Back On Car Insurance Cover This Year
Published: 7 February 2011 By MoneyHighStreet Staff 1 Comment
Many motorists intend to cut back on their car insurance cover in an attempt to save money, but they may end up with inadequate insurance as a result.
One in ten motorists are seriously thinking about cutting back on their car insurance costs, according to Your Cover, the new online-only insurance offering from Allianz.
These people plan on saving money by removing legal protection and courtesy car cover from their policies and also to increase their voluntary excess limits.
However these additional extras are automatically included in many insurance policies, so customers don’t even get to choose whether they want to pay for them or not.
It is additional charges such as mid term changes and cancellation fees that affect the cost of car insurance and these can vary widely between insurers, warns Andy James, head of direct customer marketing at Your Cover.
By shopping around, motorists could find cheaper car insurance and still retain the benefits of their previous cover.
“51% of the people in our survey said that shopping around online had made it easier to find cheaper insurance. Motor insurance is one area where it is possible to save money and there is a lot of choice out there.”
“What Your Cover does is allow motorists to build their policy themselves, adding on additional extras such as Legal expenses only if it suits their individual budget and lifestyle needs.”, Andy James advised.
I guess everyone wants to save money and really the best they can do, as you quite rightly point out, is to shop around. Most of us are lazy and just let the insurance renewal letter expire and accept the price rise quoted – it’s unfortunate because most of us can save hundreds just by getting a quote from a price comparison website. But as you say, one needs to check the level of cover provided and any increase in excess payments mentioned.