Shopping Around Advised For Car Insurance Cover

Despite the convenience that they provide, those looking to buy a new car should take out the insurance cover offered by their motor manufacturer, uSwitch reports.

In figures released by the price comparison website, it was revealed that those drivers who select their manufacturer’s premium would pay around 26 per cent more for insurance than if they had taken the time to shop around for a competitive deal. Meanwhile, it was stated that the consumers that the difference in costs between selecting the car maker or going directly to the underwriter who provides the cover stands at about ten per cent – the equivalent of 30 pounds. Overall, it was revealed that by “marking up” the true cost of insurance policies, car manufacturers are making 15 million pounds every year.

And in selecting a car insurance policy that is more expensive than necessary, consumers may find that they develop problems in meeting other motoring costs such as tax, MOT and petrol. Continuing on from this, people could also find they struggle with other financial demands such as loans, credit and store cards and household bills.

Research from uSwitch also revealed that insuring a Vauxhall Astra 1.9 CDTi straight with the car maker will set consumers back by an average of 316 pounds and five pence. However, by taking out a policy with RBS Insurance, which provides cover for the vehicle manufacturer, it was indicated that drivers would pay a typical 287 pounds and 70 pence. Yet by continuing to research all the available products on the market, it was suggested that motorists would be able to secure a best-buy policy charging 246 pounds and 55 pence. Meanwhile, savings of around 170 pounds are available for those choosing the cheapest deal available when getting cover for a Mercedes C200 sport coupe ahead of the premium offered by their insurer.

Commenting on the figures, Ashton Berkhauer, insurance expert for uSwitch, said: “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. This is good news for the manufacturer’s profits, but bad news for motorists’ pockets. 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.”

Mr Berkhauer added that ahead of signing on the dotted line of any insurance policy, motorists should make sure that they are fully aware of the document’s terms and conditions. Drivers were advised to check levels of voluntary excess are “not unreasonable” so that they will not incur high costs should they have to make a claim.

When making the decision to purchase a new car, drivers may find that taking out a low-cost loan proves to be of assistance. By doing so, consumers could be able to buy the vehicle of their dreams quickly, leaving them with an affordable level of monthly repayments to make. Meanwhile, the additional financial assistance that a loan provides could allow borrowers to purchase a comprehensive insurance policy. This may prove to be particular assistance to married or co-habiting Britons after a recent TescoCompare study showed that about a fifth of people in couples have not added their partner to their policy. However, in doing so it was revealed that consumers could save an average of 100 pounds.

Loan Arrangers providing you with breaking loans & finance news.