Cheap insurance still offers some really good benefits

By MoneyhighStreet Staff. Published on June 3, 2008 This post currently has no comments.

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Competition amongst insurers has improved the value of cheap insurance, according to finance experts.

Peter Gerrard, head of research at moneysupermarket.com, said that increased competition has raised the standard of polices so the big names can no longer charge what they want.

"They are having to be more reactive and more competitive and bring their premiums down," he said.

The AA British Insurance Premium Index for the first quarter of 2008 reveals that insurance premium hikes widely predicted for both car and home insurance are not being realised.

The Index recorded a slight fall in car insurance, with the average premium for combined buildings and contents cover falling by £4 to £293.

Mr Gerard also advised consumers to thoroughly check the small print of their policies.

He added: "What might be a really cheap policy may still offer some really good benefits. It is a case of looking around, looking at what is excluded and at what you need."

This is good news for consumers after it was suggested last week that cutting corners on car or home insurance can be an expensive mistake because the cheapest policies give you less cover.