Car Insurance. The Internet has forced prices down

There's no denying it, car insurance has been on the rise for years, but something has turned the tide and now it's on its way down again. What's caused it? It's the Internet!

The figures speak for themselves. In the second six months for 2005, the average car insurance premium was - 62.15, a drop of fell from - .02 from the previous six months. The over 65s have seen the biggest savings, as their premiums have fallen by 4.5% on the Internet in the last six months, from - 47 to - 42.

Not all the insurers are cheap though - it's quite easy to find a difference of 40% between the most expensive quote, and the cheapest, which makes it even more amazing that only 31% of motorists shop around every time their insurance comes up for renewal. 19% of motorists only get one more quote to compare with their existing insurer, and a huge 50% of motorists go ahead and renew their existing policy without even checking out the competition.

It may come as a surprise to learn who some of the most expensive insurers are. The consumer magazine Which?recently carried out a survey which revealed that Norwich Union - the most popular insurer in the UK's - didn't come first in any of the 36 driver categories that were surveyed. Direct Line, a big name in the world of car insurance, only came first in one category.

It's all down to a very clever marketing strategy that the big brand names are investing in. They advertise heavily with low premiums and good service, and then they increase premiums gradually, relying on the fact that 50% of customers renew without even looking for a cheap deal. It's a strategy that works, from the very fact that they are the UK's biggest insurers!

Getting the best insurance deal is not all about money however, some of the insurers that offer the cheapest deals do not offer the same level of service and benefits as the more expensive insurers.

When looking for insurance you need to decide what you consider to be an essential benefit. For example, if you have an accident or your car needs to be repaired, is it important that you get a courtesy car for a few days. Perhaps you have an expensive sound system in your car that cost you - 00, but some policies only cover audio equipment for up to - 00 if it is stolen or damaged. Do you have a habit of leaving personal belonging in your car - well not all insurers cover these if your car gets broken into. And you may assume that all policies will allow you to drive another person's car and get third party cover through your insurance, but that is not always the case.

You need to check out all these things before you make your decision.

Back on the subject of price, you will save money even through the bigger and more expensive insurers if you buy online. They generally offer a 5% - 10% discount on quotes requested over the Internet compared to quotes on the phone.

The best way to do it when buying over the Internet is to use a broker which gives you a number of quotes. Pick the cheapest and read through the details to see if the policy gives you all the cover you need. If not, pick the next cheapest and continue until you have found what you're looking for. Searching on the Internet for car insurance?will find you plenty of results but it's better to be a little more specific and search for cheap car insurance?or discount car insurance?

We have discussed the pitfalls of picking the wrong insurance policy just because it's cheap in this article, but we strongly advise you not to renew without checking out the other options first. It was renewal time for me a few weeks ago. My existing insurer offered me - 25 and I managed to get a quote for just - 35 from another insurer, that's a saving of - 90 and it only took me 30 minutes. You can do the same!

Brokers Online are a large Uk finance portal who specilise in Life Insurance ( www.life-assurance-bureau.co.uk/life-insurance/ ), Secured Loans ( www.life-assurance-bureau.co.uk/loans/ )and Car Insurance ( www.life-assurance-bureau.co.uk/car-insurance/ ) all online.
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