Is the cheapest car
insurance the right choice?
Well,
if you look at the UK's love affair with price comparison sites,
finding low cost cover would appear to be at the top of the list of
priorities for most when they buy car insurance. For many, getting
cover is a simple matter of using a price comparison site to identify
the cheapest car insurance for their car and profile then buying it.
But is the popularity of this approach to buying car insurance
justified? On what basis can you reasonably argue that it's the right
choice to simply buy the cheapest car insurance out of, perhaps,
thousands of prices?
The answer, of course, is that it's only 'right' in the narrowest of
senses in that it will save you money if you don't need to claim. If
you do need to claim, it doesn't save you meny compared to more
comprehensive policies as you will face a higher excess payment and
you'll also need to pay for other costs - for example alternative
transport - yourself.
Given that most people will not need to claim in any given year, is
that not a powerful argument for getting the cheapest car insurance?
Clearly, in many people's minds, it is, but such people will invariably
think differently after their first claim on such a policy. It's
sensible to get the cover you need rather than take a chance on not
needing to claim.
If it's accepted that buying a car insurance policy 'blind' to the
cover you're getting simply because it's the cheapest is unwise, how
should you select cover if you remain keen to save money?
Well, first of all, you need to know what you will need or want. If you
can manage without a courtesy car or breakdown cover, for example, then
there is no need to buy a policy that includes them.
Some people even find the cover of a 'no frills' policy acceptable but
it is important to check what policy features you're getting every time
before purchase. In most cases, the cheapest car insurance out of
thousands is better avoided.
The more that you want from your cover, the less that a price
comparison site is a good starting point and the more useful it becomes
to go direct to a top car insurance provider. The reason for this is
that the leading brands tend to offer the types of cover that the
majority - if they take the time to scrutinise it - tend to want in an
accident. It's a good balance between cost and cover. Indeed, because
it's easy to build in quality in this way, it's a reasonable approach
for anyone to select from leading brands.
Such brands are always closely priced for like policies. The spread of
prices that price comparison sites generate is mainly due to the
comparison of very different policies. People tend to overlook this
fact when choosing to use a price comaprison system, being anxious to
see all the prices first-hand to make an 'informed choice'. Actually,
it's hard to make an informed choice via a price comparison site as
soon as you move your focus away from price.
So, is getting the cheapest car insurance the right thing to do? Yes,
but only out of that group of policies that will meet your needs.
Getting the absolute cheapest is rarely, if ever, justified.
To compare
car insurance
from some of the leading car insurance providers, you may wish to start
off here. Good luck! More..
|