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Car Insurance -
Price comparison sites more useful than ever with rising car insurance premiums |
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March was the start of the new car year and motor enthusiasts often strive to obtain the latest registration plates. This year however, these motor enthusiasts could be in for a bit of a shock. Millions of drivers who frequently purchase cars at this time of year will be landed with a renewal quote that would have surged since the previous year.
This increase in insurance premiums, petrol prices and car maintenance costs for the past year has been pushing large numbers of drivers off the road. Since just the second half of 2007 car insurance premiums have leapt by 4.5% according to research gathered by moneysupermarket.com.
A report released in the Car Insurance Index by Sainsbury’s Bank looked at the rate of car insurance premiums and trends in the motor insurance industry. The report stated that since June 2006, only two years ago, the cost of insuring your vehicle had risen by approximately £19.80 a year. With purse-strings tightening as food and fuel costs also increase many drivers are either abandoning their vehicles or using price comparison sights to find the best bargain. This rise affects everyone differently, meaning that others will have added costs depending on their age and gender.
A rise in premiums of an average of 7% is likely to occur for drivers aged between 40 and 50. This will be the largest increase, as younger drivers will be hit with a 6.59% increase. Although the difference in age will effect the growth in insurance costs young people will still continue to have the largest annual car insurance premiums, at around £1,256 per year.
In terms of gender, men will still pay more than women, with the difference remaining at an average of £72 between them. Although insurance companies insist that this difference does not reflect the way men drive, they do account for this by saying that differences in cost will depend on the type of cars they drive, such as larger cars or cars with bigger engines as these are deemed as riskier to drive.
Despite your age or gender it is clear that drivers need to shop around for cheaper insurance as your existing providers may not necessarily offer you the best deal. That is not to say however that the cheapest quote will offer you this or save you money in the long term, but you may find cover that will be more suitable for your needs, allowing you to tighten your purse-strings accordingly, and price comparison sites are the best way to view such offers.
The majority of car insurance providers offer the best deals to new customers in order to attract new business. Direct Line for example, offered to cap the cost of next year’s renewals for new customers before the end of May.
The benefit of price comparison sites is of course that you can compare like-for-like quotes from the comfort of your own home. Do not be fooled by what appears to be a bargain, go through each quote and what it offers you. Comparing car insurance, indeed any form of insurance has never been so easy, and with the rise in costs finding car insurance deals has never been so necessary.
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