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On the Money: Get motoring with these tips to save on car cover
March is one of the busiest months of the year for car insurance renewals. That used to be the case because Britons rushed to buy the cars rolling off production lines with new licence plates; now, budget-conscious buyers are opting for second-hand over new. The used car market is eight times bigger than the retail market for new motors, according to trade figures.
Still, new or old, spring remains the key period for car purchases, meaning now is the time when millions of households are seeing renewal quotes for motor insurance landing on the doormat. Research shows a third of British drivers accepted their incumbent insurer’s renewal quote last year. Most did so out of loyalty to the insurer or in the belief that as the cover was cheapest last year, it would be again.
Sadly, this is rarely true. It’s easy to work out how little loyalty counts among the insurance giants: just phone your provider at renewal time and tell them you are going to move on to an alternative, cheaper insurer. Almost all will immediately drop their initial quote: renewal deals are rarely the best on offer. Little surprise the Office of Fair Trading is investigating Britain’s £10 billion car insurance industry after finding the cost of premiums had jumped by 21% between 2009 and 2011.
Source: Evening Standard
