Of the credit crunch, celebrity garages and savings

Several weeks ago it emerged that the credit crunch has spread its wings around the garages of a number of celebrities, leaving them with a shadow they may not necessarily want to cast.

According to City Car Club, hundreds of thousands of pounds have been lost by celebrities in the last year as a result of their luxury cars depreciating in value due to the financial dowturn.

Nearly £200,000 has been lost by AC Milan midfielder David Beckham – the most among the celebrities named – who has seen his fleet of vehicles including an Aston Martin, a Bentley and Lamborghini lose their value.

According to the research, Beckham’s Bentley Arnage and Bentley Continental GT have depreciated by £68,520 and £54,930 respectively, while his Hummer H2 has depreciated by £24,702.

The celebrity footballer, whose Lamborghini Gallardo supercar bought in 2008 for £123,400 now costs £90,230, beat fellow England teammate Steven Gerrard, placed in second position by the club, with losses of £160,705.

Mr Gerrard’s collection includes an Aston Martin Vanquish S worth 175,000, which has depreciated by £70,000; a Bentley Continental GTC, which has lost £54,930 and a Porsche 911 Turbo, which has lost its 2008 list price of £108,000 with a depreciation of £23,000 among others.

Rio Ferdinand, who was placed in third place has lost an estimated £158,665, while others, including musicians Justin Timberlake and 50 Cent, X Factor judge Simon Cowell and many more are all estimated to have lost thousands on their car collections.

Uncontrollable circumstances?

While these moneyed individuals may have no control over what their vehicles are doing to their wealth, other average consumers can adopt various measures to ensure their vehicles do not dent their finances.

And one way to do so is by shopping around for the best insurance deal possible, one that meets all the necessary needs without costing an arm and a leg.

The first port of call when embarking on such an endeavour – in this age of ecommerce – is a price comparison website.

Price comparison websites can be useful tools for discovering what lies out in the market. This is because they operate like a reversed bazaar where the shops go to the customer instead of the customer going to them.

According to an article on price comparisons sites by the BBC, these forums, can help customers “navigate through complicated financial decisions”, which could be useful for anyone trying to find the right insurance deal, as well as save money.

However, to increase the chances of achieving this, consumers are advised to be a bit proactive and do their own research by carrying out a comparison of a variety of these websites.

“Don’t only visit one site as a result of seeing the TV commercial,” recommends Martyn Hocking, the editor of Which? Money.

“In reality, the prices vary significantly between each site – and no one site has all the best deals, so you really need to visit two or three sites,” Mr Hocking is quoted as saying by the news provider.

The editor also went on to state that cheap is not necessarily best due to the fact that offers may differ and not tick all the required boxes.

“If it’s something like insurance, you need to look at how much cover you are getting, because it could be that the cheapest product is cheap, because it actually doesn’t offer adequate cover,” he told the BBC.

Motorists can also influence how much their car insurance quote costs by presenting themselves in good light, according to money saving expert Martin Lewis, who recently stated that a job title is significant.

The renowned expert recently said that “subtly tweaking job descriptions” while filling an insurance form can impact the amount of money incurred on car insurance costs, although motorists should not be tempted to lie while doing this.

Consumers should “submit a job title that reasonably describes” what their profession is or they risk committing fraud, which carries the threat of invalidating car insurance.

“Imagine you were asking a reasonable person who knew what you do for a living. Would they say it was reasonable for you to describe yourself this way?” Mr Lewis advised on his website.

Other ways that can help drive down insurance costs include driving more carefully with the aim of collecting more no claims bonus, as well as avoiding any driving offences.

In the current economic climate, motorists may be tempted to cut back on car insurance or just go for a basic product but if recent statistics from the Department of Transport are anything to go by, then having a product that ticks all the boxes is not an expensive option.

In fact, it could be the opposite. According to the figures, 250,000 people were injured on the roads in the UK, with most of them sustaining minor injuries.

As these figures show, it may be advisable for motorists to opt for cover that will not only fix their beloved car, but also fix them.

You are the boss

As the above facts have shown, football stars such as David Beckham, Steven Gerrard, Rio Ferdinand and pop mogul Simon Cowell may have no control over their vehicles eating into their finances but average consumers can avoid this route.

Be proactive and get a lower car insurance quote today.

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