Millions lose out as car insurance peaks

Posted :27-07-2005

The car insurance business reaches its peak next month, and companies are putting out their best advice to ensure that car owners get the best value premiums they can.

The August peak is left over from when car registrations were issued on the first of August each year.

This system was replaced in 2001 with twice yearly charges in March and September, but many motorists are still locked in the cycle.

Privilege Insurance is one of many insurers that sees an annual upswing in applications - with the number of website hits and phone calls in the first week of August doubling last year.

But people looking at price only when deciding whether to renew their insurance with their current provider, could be missing out.

Taking a slightly more expensive deal, or one with a larger policy excess, could be a better value propositon in the long term.

Additionally, just because your insurance was the cheapest around last year, this does not mean this will be the case a year down the line.

Some insurers up the cost of premiums in the years after insurance is taken out to make up for their initial cheap deals, and a motorist's status might change as no-claims bonuses build up or are lost.

Additionally, every year new policies and propositions emerge that could work out cheaper than existing policies.

"Shopping around for car insurance can seem like a chore, particularly during the summer, but customers should use it as an opportunity to challenge their existing insurer by comparing their renewal quote with the competition," said Ian Parker, managing director of Privilege Insurance.


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