Car Insurance: Don't be taken for a ride!

by ADAM SINGLETON

Car insurance is a necessity for motorists. In fact, it's more than just necessary; in the UK, it��s a legal requirement! Many consider car insurance to be just another expense that comes with the territory of owning a car, and a large number of motorists tend to stick with their current insurance provider each year when the renewal notice hits the doormat.

But why is this? Sure, the quote might sound reasonable and you're probably not paying any more than you do now; or maybe shopping around for a new quote seems too much like hard work and you simply don't have the time to visit every insurer's website or phone their sales department for a quote. However, in so doing, it is likely that you're paying over the odds for your car insurance, and it's this blas�� attitude that is perpetuating the reality of car insurance that is more expensive than it should be!

Recent research from Moneysupermarket suggests that many car insurers are taking advantage of their customers' loyalty by inflating insurance premiums; in one case it was shown that a new like-for-like quote was almost ?2000 cheaper than the driver's current insurer. However, car insurance is most definitely a buyer's market, and as most insurance companies are often desperate to land your business, it makes good consumer sense to play the market and shop around for a better deal.

Like many consumer services, the best carrots are often offered to new customers in order to tempt them to buy. As a result, the potential savings on car insurance can often be huge, and providing you shop around can often pay for the effort of finding the deal several times over. But, what if you are among the current crop of customers who can't take advantage of the deals offered to potential new customers? After all, it's probably your continued loyalty that is helping subsidise these deals to entice those new customers. How can you take advantage of the better deals on offer? Well, the simplest answer is to become a new customer yourself!

With the amount of competition within the car insurance industry, you're never far from some form of promotional carrot; an online discount, for example, or maybe a price beating guarantee. Perhaps some free breakdown cover thrown in for good measure, and maybe the promise of a courtesy car, too. There is nothing to stop you exploring the market in search of the best policy, so be sure to tell your existing company you're considering moving should your current car insurance deal no longer cut the mustard - if they are passionate about retaining your custom, there's a good chance they'll try to match - or better - any quote you find elsewhere.

However, there are a multitude of car insurance companies all vying for your business, so how do you know which one offers the best value? Many car insurers are now 'direct' in that you deal directly with them, rather than a broker or agent; so while you might get a decent quote, bear in mind you'll only get a quote for the company in question, meaning that shopping around could take some time. Also bear in mind that certain elements may be tied into the policy, so you might not be able to add that preferred breakdown rescue service and instead have to use the insurer's own.

Alternatively, recent times have seen an upsurge in comparison websites that can search the market for you in seconds, and can deliver a wide range of insurance quotes for you to examine - including quotes offered by the aforementioned 'direct' companies. Most comparison websites are impartial, so they're not affiliated to any particular provider or network, and you'll have a greater choice of the market.

To take advantage, you simply fill in the relevant information and let the website do all the work! Once the quotes are returned, you can review the ones which most closely match your requirements, select the one which most appeals and buy your cover online; or have the quote emailed to you to buy later.

So while car insurance is a legal requirement in the UK, it isn't the case that you have to stay with your current insurer year after year. But while it might seem like an expensive and time-consuming necessity, shopping around for car insurance needn't be any more time-consuming or strenuous than opening that renewal notice envelope! And it could save you a packet, to boot!