Failing To Shop Around For Car Insurance Can Cost You

When looking for a new vehicle, most people compare makes, models, and car finance offers. Brits should also be shopping for car insurance because failing to do so costs them tens of millions of pounds annually. Car insurance comparison shopping should not be a one-time thing, either- it should be done prior to each policy renewal date.

Sainsbury’s Finance discovered that inadequate auto insurance coverage costs UK motorists £73 million annually. Many policyholders discover too late that their policy does not cover things like lost keys and accident-related expenses. This costs them more out of pocket, putting a greater strain on household budgets.

Seven percent of the individuals surveyed reported having to cover expenses for child car seats or courtesy cars following an accident. Had they selected a car insurance policy that offered these items, they could have saved themselves the extra expense. Many of those polled said they simply selected the least expensive coverage without even shopping around to compare providers. Drivers also tend to stay with their existing carrier for years, even if another provider offers a better deal.

Sainsbury’s Car Insurance head Ben Tyte noted that comparing car insurance policies is important. All policies are not equivalent so drivers should look for one with adequate coverage. As one example of the differences, six in ten policies do not cover transportation costs following a car accident. This can leave drivers spending a lot of money to get around while their car is being repaired.

Mr. Tyte reported that shopping for car insurance based only on price can have “disastrous consequences.” He advised drivers to compare insurance policies to ensure that each offers equivalent coverage before reviewing the different prices. By shopping around for car insurance and car loans, UK drivers can leave more money in their bank accounts.