Car insurance gearing up to drive down costs

 For once finances seem to be going in favour of the UK motorist, with Esure (http://www.esure.com/) announcing plans to double its share of the UK's car insurance market - a move which is likely to spark a price war, other internet-only direct insurers passing on to consumers savings based on their low overheads, and specialist insurers offering reduced rates for their particular target markets. A trial pay-as-you-go scheme from Norwich Union (http://www.norwichunion.com ) is also creating a lot of interest for money conscious motorists.

The pay-as-you-go scheme uses a small box costing an initial £199 which is fitted in the driver’s boot, to record when and for how long a driver actually uses their car. The box stays in contact with a satellite which is sent regular updates of the journey data 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 time they used their vehicle.

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

For low mileage users, this system could present significant reductions in premiums, for higher mileage drivers searching about for the best deals at renewal time is an absolute must.
Unfortunately, last year five million motorists failed to shop around, missing out on an average premium saving of £180. Shopping around becomes especially important 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 significant savings can be made by shopping around. Comparisons sites such as Moneynet ( http://moneynet.co.uk )enable consumers to quickly look at hundreds of insurance providers in one go, making it easy to find the best deals that are available, and they often have their own extra discounts which are provided through their own sites.

About the Author

Richard works in Edinburgh for a media company, occasionally writing for the personal finance blog Cashzilla ( http://cashzilla.blogspot.com/ ), and drinking too much coffee.

 Richard Green

More Articles 

Insurance Glossary of Terms - Darren Yates
Assured - Those insured under the terms of an insurance policy. Benefit - The money paid to the policyholder when a claim is made. Bid Price - The selling price or cash-in value of your unit holdings. Bonus - Relates to a with-profits policy. The...

Term Life Insurance Quotes for Singles - Ivon T Hughes
Term life insurance quotes are rarely a concern of single people, but they should be. Unfortunately, there is a misconception that term life is something owned only by families in the event that the chief breadwinner dies. Term life insurance...

Business Insurance – And What You Need To Know - By Vickie J Scanlon
Getting your business up and running is exciting, challenging and hard work. You’re finally making money – and you are the driving force that is making your business grow. But have you taken care of the “What ifs”. Like – “What if I get sick, how do...

7 Sure-Fire ways of reducing your home insurance premium - Bill Smith
7 Sure-Fire ways of reducing your home insurance premium Home security improvement: All insurance companies will happily offer you a discount for burglar alarms and smoke detectors. Homes with fire and burglar alarms that communicate with a...

Pet insurance - Not only is it inexpensive, but it can save you a bundle. Read and find out why you can't afford not to have a pet health plan. - Dean Cecere
Pet insurance has been and still is a growing concern with pet owners alike, due to the increasing amount of necessary trips to the veterinarian. Some of these trips can be extremely expensive depending on the reason for your visit. Routine check...

Lowering Your Motorcycle Insurance Without Lies - S Joseph
Ideally, the way to get a good deal on your motorcycle insurance is to make sure that you know what the cost of insuring a motorcycle is before you buy it. By being aware of the ongoing costs, the buyer can make informed choices about what...

What You Need To Know About Home Based Business Auto Insurance - Jon Butt
When purchasing home based business insurance, auto insurance should not be overlooked, nor should you assume your personal car insurance is sufficient as home based business auto insurance. Even if it is, it's important to know how, when, and to...

What Does Buildings Insurance Cover? - George McGonigal
You will find that your lender will insist that you have this cover when you take out a mortgage. The lender, remember, owns your home until you have paid off the mortgage. However, because they don't live in it, you are responsible for it, thus you...

Is Pet Insurance Right for You? - Sherry Kirchenbauer
What is Pet Insurance? Pet insurance is a health plan for your pet to insure against large and small unexpected veterinary bills over the life of your pet. Potential treatments for your pet now rival human treatments both in sophistication and...

What is Life Insurance? - John Mussi
Life Insurance is an insurance policy that provides an agreed amount of cover over an agreed term, so that should you die during the policy term, a lump sum is paid out. Life insurance is considered as the cornerstone of financial planning. It is a...

Pet Insurance is it a viable option? - Terry Price
Did you know that pet insurance has been around for 15 to 20 years? The fact is, not many people are aware of this great product. Unfortunately, availability has been limited and some restrictions on policies have made it prohibitive in a lot...

The Magnificent Seven - Quick Tips for Cheaper Car Insurance - Jason Hulott
Getting the best deal on your car insurance does not mean that you have to forgo the security of being covered by a well-known insurer. There are many ways of tailoring the policy and considerations you need to make to provide the cover you need at...