Motorists urged to shop around for car insurance

With new car registrations available from 1st September, insuresupermarket.com is urging motorists to shop around for the best deals on car insurance, particularly for those who purchased a car this time last year and are coming up to renewal time on their insurance policies.

Comments Richard Mason, director, "No one policy is ever cheapest for every situation so it’s essential to shop around for your car insurance. Plus, there are other things you can do to lower your insurance premium — considering adding a higher excess is one of them. By including an excess of £1,000, you can save up to 25% on your insurance premium.

"This is particularly useful for lower risk drivers who are unlikely to claim on their policy and never have in the past. Most insurance claims tend to be below the £1,000 mark anyway — and our experience has shown that people tend to pay for smaller repairs like these rather than claiming on their insurance policy — so it makes sense to go with a higher excess."

Other useful tips include:

Adding an older driver can cut premiums by 12-15% for young drivers
Reducing mileage (by car sharing or telling your insurer if you only use the car at weekends) - can save 15%
Think before making a claim — it could add 23% to your premiums
Some insurers charge up to 30% ‘APR’ to pay monthly
Protecting your no claims bonus adds between 6%-17% to your premium
Some insurers give lower premiums to married rather than co-habiting couples - as much as 30%
Average premiums for ‘cooler’ brands of car are between 20-25% more expensive than other brands of similar performance
Premiums can cost over TWICE as much with a women only insurer

Richard Mason continued, "We are urging drivers to shop around because motor premiums still average £579.57. This is relatively unchanged from 2004 as there is still pressure on the market from uninsured drivers and increased consolidation means that big players are continuing to dominate the market, and premiums are staying high as a result.

“The good news for drivers is that the fast increases in premium levels seen in 2004 seem to have come to a halt for the time being. However, insurance regulation may mean we see premiums rise slightly as insurers cover the cost of administration, and consumers need to continue to seek out the most competitive quotes for their motor insurance."