The new 08 car registration is on the way this month with fashion followers keen to be the first on the road with the plates.
Driving off with a 08 plate will be an expensive experience whether you’re buying a Fiat Punto or a BMW X5. Quite apart from the depreciation – the average new car loses £510 in value every month after you buy. At the end of the first year you’ll be £6,000 down as your new 08 car loses value.
There’s not a lot you can do about depreciation and if you’re really determined to be the first with the 08 plate then you’ll go ahead regardless.
But you can ensure that you’re getting as good a deal as possible on car insurance by shopping around.
MoneyExpert.com is here to guide you through the pitfalls of insuring that your new car is value for money on insurance at least…
Shopping around not overpaying
The cost of car insurance is on the rise with the average cost of premiums up by more than five per cent in the past year alone, according to Sainsbury’s Bank.
It reckons the average cost of annual insurance is around £497.26 compared with £472.52 last year. It’s young drivers who pay the most – the average for an under-25 is around £1,256 compared with £333 for an over-50.
Drive a hard bargain
Experts reckon drivers overpay by around £1.9 billion a year because they do not shop around for motor insurance.
Millions of us simply accept the first quote we are offered or accept the renewal premium from our existing insurer.
Instead you should be looking to get the best deal possible by shopping around. The old days of having to phone around insures or contact a broker are gone as you can compare insurance deals online.
Comparison websites enable you to compare quotes from a wide range of insurers in a few minutes on the internet.
What to look for
Cars are classified in 20 bands for insurance, as set by trade body the Association of British Insurers.
The bands are set depending on how expensive the car is to repair, how secure it is and how powerful the engine is. A small, cheap car would fall into band 1, while a high-powered, expensive model would fall into band 20.
How old you are, how long you’ve been driving, where you live and where you park your car are all likely to affect how many much you will have to pay.
If you park on the street you will be charged more than if you park in a garage and if you have special security devices fitted you’ll save money.
Watch out for offers
Firms have launched tempting insurance offers but not all the offers are quite as good as they look.Tesco Car Insurance, for example, is currently offering motorists £50 off their shopping or fuel if they choose Tesco for their car insurance policy. Direct Line says it will cap premiums for new customers who sign up with them, meaning their premium will not increase when it comes to renewing the policy in the second year. However, to qualify for the deal, nothing must have changed on the policy after the first twelve months, so anyone who needs to change one of the policy details, such as cover type, drivers, convictions or claims, will not qualify.