Consumers 'are paying too much by picking on the spot car insurance'
Published On 15 April 2008
Many people buying new cars are paying too much for their insurance, a new study has warned.Research from uSwitch found that 'then and there' insurance offered by car manufacturers is typically ten per cent more expensive than the cover would be if the driver approached the relevant underwriter.
What's more, drivers who shopped around for the best insurance deal on their new motor were able to save an average of 26 per cent.
For example, the site found that Vauxhall typically charged £316.05 to cover a new Astra 1.9 CDTi. Drivers who approached the underwriter, RBS Insurance, directly found that the cost of cover was £287.70.
However, uSwitch also pointed out that the cheapest insurance option for the model actually came to £246.55 - showing that drivers could save £69.50 by shopping around.
Ashton Berkhauer, an insurance expert at uSwitch.com, commented: "Motorists tempted to opt for 'on the spot' manufacturer insurance must be warned that unless they are getting a full year for free they will be paying more than they need to for their cover.
"However, it's very easy to avoid - motorists simply need to shop around to make sure they pay the lowest price for the level of cover they need. Insurance through the manufacturer rarely comes with any extra benefits, just an extra cost unless it's completely free."
