Car insurance – loyalty just doesnít pay

Ever wondered how car insurance companies can claim to save you money by switching to them? Ever thought that if they are all offering savings, how can anyone be making any money?

Now think about those lovely renewal notices you get through your door every year from your various insurers. Premiums going up again?

There’s the catch. Insurance companies need to win new business and are prepared to offer attractive discounts for doing so. But that is often at the expense of their existing client base.

This means while your premium rises (according to the AA car insurance premiums are up by 6% over the past year), your insurer can offer new customers a cheaper deal with the extra cash.

Loyalty – certainly with car insurance – just does not pay.

This is bound to be one of the many reasons why such a large amount of motorists switch car insurance provider every year. According to the MoneyExpert.com Switching Index some 5.9 million drivers switch insurer every six months.

So while the AA can report that premiums are rising, it’s actually perfectly possible for you to get a cheaper deal by jumping ship.

It costs you nothing to swap car insurance company when your deal expires and it takes only seconds to compare a huge swathe of the market online.

The process is pretty simple – just a few forms to fill in but nothing compared to sitting by the phone with the Yellow Pages for hours at a time – and you can see what features each insurer is offering you at a glance.

Think of it like this: if you’ve been with the same insurer for years, thinking something like "well I’ve always been with them and the premiums are always pretty reasonable", then just log on and compare your car insurance costs now with what some insurers are prepared to offer you. You could find you have wasted hundreds of pounds in that time.

So now is the time to start saving!

If you’re coming to the end of your car insurance deal and had resigned yourself to a hike in premiums, why not get some quotes and see what you could save? Click here to compare car insurance premiums.

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