Car Insurance Gearing up to Drive Down Costs

For once finances seem to be going in favour of the UK motorist, with Esure announcing plans to double its share of the UK's car insurance market - a move which is likely to spark a price war, other internet-only direct insurers passing on to consumers savings based on their low overheads, and specialist insurers offering reduced rates for their particular target markets. A trial pay-as-you-go scheme from Norwich Union is also creating a lot of interest for money conscious motorists.

The pay-as-you-go scheme uses a small box costing an initial £199 which is fitted in the driver's boot, to record when and for how long a driver actually uses their car. The box stays in contact with a satellite which is sent regular updates of the journey data stored on the box, tracking the vehicle and then delivering the information to the insurer. The driver is then charged based upon how far at what time they used their vehicle.

"We got a statement", said one member of the trial, "which showed what mileage we had done, and on what days of the week, as well as if we had been driving in the evenings or peak hours."

For low mileage users, this system could present significant reductions in premiums, for higher mileage drivers searching about for the best deals at renewal time is an absolute must.

Unfortunately, last year five million motorists failed to shop around, missing out on an average premium saving of £180. Shopping around becomes especially important for anyone coming to the end of a free insurance offer on a dealership car and should not simply take the quote offered by the manufacturer's insurer, as significant savings can be made by shopping around. Comparisons sites such as Moneynet enable consumers to quickly look at hundreds of insurance providers in one go, making it easy to find the best deals that are available, and they often have their own extra discounts which are provided through their own sites.

While the government tries to work out new ways to extract more money from motorists, the competitiveness of the insurance industry is thankfully helping to drive down the cost of insurance premiums, making it one of the few rays of hope for UK drivers.

Richard works in Edinburgh for a media company, occasionally writing for the personal finance blog Cashzilla, and drinking too much coffee.

---

Insurance for Car Wash Fundraisers

Non-profit groups in this day and age need to watch... Read More

How to Reduce Car Insurance Premiums

Here are some useful tips on how to reduce car... Read More

How Can I Compare Life Insurance Quotes?

The online life insurance companies offer a free service where... Read More

Life Insurance: Why Theres No Need to be a Desperate Housewife

Life insurance looks set to make a comeback in the... Read More

Cure The Insurance Blues By Lowering The Cost of Your Premiums

Does the current amount that you pay on your insurance... Read More

Free Money Saving Auto Insurance Tips

Our money saving auto insurance tips were written for one... Read More

Seven Steps to Filing Your Car Insurance Claim

Having even a teeny-tiny car accident can be one of... Read More

7 Tips Toward Helping You Reduce Your Insurance Costs

Not a year goes by that insurance rates go up.... Read More

General Knowledge - Critical Illness Insurance

Critical illness can happen to anyone, and often does. If... Read More

Finding a Discount Car Insurance Broker

Discount car insurance brokerTimes past finding a discount insurance broker... Read More

Reducing Soaring Insurance Claim Costs

With the soaring rise in claims to insurers from their... Read More

Term Life Insurance - A Safeguard for Small Business Owners

Term life insurance can offer protection for a small business... Read More

An Intro To Life Insurance

There are many options available for life insurance, and for... Read More

An Intro To Auto Insurance

Although premiums, policies and prices vary widely, the mandate does... Read More

Health Savings Account (HSA): Useful for Women in Childbearing Years?

The Health Savings Account (HSA) is an amazing tool that... Read More

What You Need to Know About Auto Insurance

Let's be realistic, everyone needs to have auto insurance. Aside... Read More

The Best Rates on Life Insurance

Finding the best rates on life insurance is not difficult... Read More

Is Your Auto Insurance Company Rated?

Several national rating institutions rate insurance companies. Do coverages, rates,... Read More

Keys To Controlling The Future of Health Care

Several key changes are necessary to get control of the... Read More

Risk Retention Groups RRG

In response to a hard insurance market in the mid... Read More

7 Sure-fire Ways of Reducing Your Home Insurance Premium

Home security improvement:All insurance companies will happily offer you a... Read More

Avoiding The Potholes Of Car Insurance

Car Insurance is an issue that we all of face... Read More

Insurance for Those Who Run Bed and Breakfast Properties

A Bed and Breakfast, often referred to as a B&B,... Read More

Health Savings Account (HSA): How Do I Invest It?

The Health Savings Account (HSA) is an amazing tool that... Read More

Health Insurance And Insurance Brokers

If you are in the market to purchase your own... Read More

Is Life Insurance Comparison Really Necessary?

When you want to purchase a life insurance policy, you... Read More

All Auto Insurance is Not Created Equal!

Contrary to what you may have heard all auto insurance... Read More

Everything You Need to Know About Life Insurance

Life insurance is a type of protection that can be... Read More

Why Do You Need Homeowners Insurance?

The biggest single investment most people make in their lifetime... Read More

Health and Dental Insurance Quotes - Applying Online

Since 2001, large health and dental insurance companies such as... Read More

How to Reduce Home Insurance Premiums

Here are some useful tips on how to reduce Home... Read More

Consumer Driven Health Plans [ CDHP ]

Do you know that skyrocketing health care costs have been... Read More

Health Savings Account (HSA): Helpful for Older People?

The Health Savings Account (HSA) is an amazing tool that... Read More