Car Insurance Gearing up to Drive Down Costs

For once finances look to be going in favor of the United Kingdom motorist, with Esure announcing programs to duplicate its share of the UK's car insurance market - a move which is likely to trip a terms war, other internet-only direct insurance companies passing on to consumers nest egg based on their low overheads, and specializer insurance companies offering reduced rates for their peculiar target markets. A trial pay-as-you-go scheme from Norwich Union is also creating a batch of interest for money witting motorists.

The pay-as-you-go scheme utilizes a small box costing an initial £199 which is fitted in the driver’s boot, to enter when and for how long a driver actually utilizes their car. The box remains in contact with a artificial satellite which is sent regular updates of the journeying information stored on the box, tracking the vehicle and then delivering the information to the insurer. The driver is then charged based upon how far at what clip they used their vehicle.

“We got a statement”, said one member of the trial, "which showed what mileage we had done, and on what years of the week, as well as if we had been driving in the eves or extremum hours."

For low mileage users, this system could show important reductions in premiums, for higher mileage drivers searching about for the best deals at reclamation clip is an absolute must.

Unfortunately, last twelvemonth five million motorists failed to shop around, missing out on an average insurance premium economy of £180. Shopping around goes especially of import for anyone coming to the end of a free insurance offer on a dealership car and should not simply take the quote offered by the manufacturer's insurer, as important nest egg can be made by shopping around. Comparisons land land sites such as as Moneynet enable consumers to quickly look at 100s of insurance suppliers in one go, making it easy to happen the best deals that are available, and they often have got their ain extra price reductions which are provided through their ain sites.

While the authorities seeks to work out new ways to extract more than money from motorists, the fight of the insurance industry is thankfully helping to drive down the cost of insurance premiums, making it one of the few beams of hope for United Kingdom drivers.