Monday 26 September 2016

'Switching' insurance can save you €300 in cost of car cover

Published 14/09/2016 | 02:30

Changing insurance provider can save you money
Changing insurance provider can save you money

Regular switching from one insurance company to another is the best way to curb spiralling costs, a new report reveals.

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It outlines several steps to cut the cover burden, but strongly highlights the savings you can make by being a new customer through frequent switching.

The report is by Gocompare.com and its findings are British-based, but a number of its tips are highly relevant here: good research and advice know no boundaries.

The report says: "Most people will already know that in most cases, the best deals go to new customers, and car insurance is no exception. Regularly shopping around is the best way to save big money on the cost of your renewal."

The report quotes independent research that shows customers could save as much as €300 on average by doing so.

While other advice will save euro, its says the "big money" is in switching. "Never just accept the first offer you're given, especially if your circumstances have changed," it adds.

Another area for potential savings is the type of cover you buy.

There is a misconception, the report says, that third-party only is cheaper than comprehensive. "In many cases this isn't true," it says. "In some circumstances, fully comprehensive cover could even be cheaper than a third-party only policy. That's because, some insurers may view those looking for comprehensive cover as caring more about their vehicle and therefore more likely to be careful on the roads." The report found 'significant' differences in price, of up to €230, in favour of comprehensive.

If you can - and it is not easy - it says paying for your insurance in one annual instalment is often cheaper than going for monthly payments.

Other areas that the report found potential savings included being absolutely specific on what you do and whether travel/driving comprises much or little of your work.

It is also important, the report says, that if you're retired or a homemaker to emphasise that - and not tick the 'unemployed' box. Unemployed drivers face higher insurance costs than homemakers or retirees, the report claims.

But the bottom line is that, regardless of your circumstances, you should shop around and save money.

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