Think your car insurance was a bargain? Take a closer look.

With a plethora of new companies offering car insurance aside from their traditional products, it looks as though the price is being driven down due to competition. And for once, it's the consumer who's the winner, getting lower prices and just as comprehensive cover. So how can these companies afford to cut their prices? Is it all in the name of giving the customer a better deal? Or are they making up their losses somewhere else?

If you look further under the surface, there are hidden charges, especially against the older and younger generations of drivers. Norwich Union, whose slogan is Quote me happy?offers a policy to younger drivers in which, every time they drive between the hours of 11pm and 6am, they have to pay an extra pound. Keeping their customers very happy. The older generation get hit by the prejudices against those at either end of the scale too, with many companies afraid to take on those older than 60 - and if they do, hiking up the prices. For example, the AA suggests that someone paying - 97 at 60 will be paying a massive - 60 by the age of 80. This is because it is thought that the government will introduce compulsory eye and general health tests for those still driving over the age of 60. Several old age charities oppose such measures, with Age Concern suggesting that fitness to drive should be based on skill, not age.

This is not supported by the Association of British Insurers, who suggest that In fact, older drivers have more accidents per mile than drivers in middle age?and also suggest that there is a higher risk of injury or death resulting from the higher accident rate.

So is it just the young and the elderly who are bearing the brunt of the cost cuts?

Unfortunately not. One of the most popular new policies on the market is from Tesco, who are leading the way into branching out from their traditional role as a grocer. Lumping their insurance in with their bargain basement, value?range, on the surface it seems like a fantastic idea, it offers higher coverage than basic 'third party?insurance but is not quite fully comprehensive, however, at - 85.90 for a 21 year old, it seems excessively expensive for a value package, especially when you look into the other charges. The excess is excessive, coming in at - 75, you can only get your car repaired at recommended Tesco repair sites. The value?option is not open to those under 21 and, if you need to get new parts, you had better break down in within the first year, because after that they are not included in your insurance package.

So car insurance seems to be getting cheaper and this may indeed be the case if you are between 21 and 60 but, if you find yourself on the wrong side of those ages at either end of the spectrum then they won't quote you happy?or give you any Tesco value.

Scrouge Online ( www.scrouge-online.co.uk ) are a specialist finance website offering car insurance ( www.scrouge-online.co.uk/car-insurance.htm )
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