Drivers ‘Should Consider Ways To Cut Insurance Costs’
Motorists may be placing themselves under unnecessary financial pressure, a new study suggests.
Research carried out by TescoCompare indicates that those who are married or are living with their partner may be making excessive payments on their car insurance by having two individual policies instead of a joint premium. Findings from the financial services firm show that although adding a loved one to a policy can generate savings, two-thirds of couples were revealed to not tell their insurance provider as soon as possible that they have moved in together. Just under a fifth (17 per cent), meanwhile, claim not to have added their partner at all. Overall, the average saving available in adding a partner to an existing car insurance policy stands at more than 100 pounds.
As a case study, TescoCompare used the example of Mr and Mrs Smith, a pair of bank managers, aged 36 and 35, who drive a Citreon Xsara Picasso and Ford Puma, respectively. Should both be on a single insurance policy Mr Smith would pay some 264 pounds 05 pence with his partner shelling out 232 pounds 55 pence - a total of 496 pounds 60 pence. However, by having a joint policy it was claimed the couple’s motor insurance expenditure would stand at just 361 pounds 15 pence, generating savings of 135 pounds 45 pence.
And in switching to a more cost-effective insurance plan, it is possible that people will be able to meet other motoring expenses, such as MOT and petrol costs with greater ease. The savings made could also assist consumers with other financial demands, such as personal loan repayments and credit and store card bills.
Commenting on the study, Paul Baxter at TescoCompare said: “Many people believe that adding their partner to their existing car insurance policy will immediately increase their premium, but in reality this is not the case. Car insurers assess the individual risk profile of each customer and couples living together typically carry a lower risk, resulting in lower premiums. There are many things drivers can do to lower their annual car insurance premium and adding your partner can be a very effective way of cutting costs.”
He added that motorists should also take the time to make use of a price comparison website to see if their current insurance policy is best-suited for their needs. Furthermore, the expert advised drivers to ensure that they are as precise as possible about their occupation, as what job consumers state they do can have an impact on the premium that they are charged. Mr Baxter added that people should also get an accurate valuation for their car, as under or overestimating this can “greatly impact” upon how much insurance they pay.
Those consumers looking to further reduce pressure on their spending may wish to consider applying for a low-rate UK loan. By using a cheap loan to quickly meet various demands on their expenditure, borrowers may be able to discover that in having just a single low-cost repayment to make each month, borrowers might be able to generate more disposable income. Such a cheap UK loan could also prove to be a competitive way for motorists to fund purchasing adequate insurance to help them get back on the road quickly in case of a mechanical breakdown or theft. Last year, research carried out by AA Insurance showed that about one in four commercial van drivers state if their vehicle was not available they would lose an average of 362 pounds per day.
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