Car Insurance – New Style Policies Cut the Cost

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Expect a flood of new car insurance policies. Tesco was the first to enter the fray with its “no frills” policy. Others will quickly follow Tesco’s lead in their quest for new customers.

Tesco’s offer is not well received by the AA. They claim that the excess is too high, and that you can buy the standard fully comprehensive at the same price. Norwich Union believes other insurers can compete with simpler, less expensive coverage. They have studied the driving habits of 5000 motorists for two years and are now offering new policies that are based on this research.

These two insurers will strive to remain at the top of “Best Buy” tables. It will be fascinating to see how the insurers compete to win the business and keep their premiums low.

What’s the difference between these policies?

Tesco’s “Value”, a new car insurance, is the first. This hybrid insurance is higher in coverage than basic third-party, but less comprehensive than the full-coverage. You won’t be able to get a courtesy vehicle if your car is not on the road. Also, the excess at PS475 is significantly higher than the usual. No-claims discounts will not be applied and repairs can only be done by approved garages. They have reduced the normal warranty period for repairs to 12 months. Tesco claims that there will be a 12% savings on standard coverage if you are able to accept these limitations. You must also purchase your cover online.

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Norwich Union offers a policy for young drivers. Customers are charged according their driving habits and are not available to new customers at the moment. The likelihood of an accident at night is higher for younger drivers, so there is a PS1 charge for every time they drive between 11pm and 6am.

Direct Line is not going to be outdone with similar products on the market.

This all sounds a bit confusing. You need to think about what you are missing out on in terms of coverage. If you are willing to compromise some coverage or pay a higher excess, it is possible to reduce the traditional fully comprehensive policy. These deals can be found online and are easy to find. But why limit yourself to one company when you can get them all? You can search the internet for car insurance brokers and be specific about your requirements. They’ll then do the research to find the best deal for you.

Car insurance is also a problem for older drivers. The government may consider requiring regular eye exams and other medical screenings to be done three times a year. This request was made by the Association of British Insurers because they believe that older drivers are more likely to be involved in accidents due to slower responses and declining eyesight. Age Concern, an organization representing the elderly, opposes this. They believe that driving ability should be determined on skill and not age.

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According to the Association of British Insurers, older drivers are more likely to be involved in an accident per mile than drivers in their middle years. They also report that they have a greater chance of being injured or killed in a crash for both them and other road users.

Car insurance premiums will rise after 60 as underwriters become more cautious about taking on new clients. According to the AA, a 21-year-old woman will pay a premium of PS326, but it will drop to PS197 by 60. However, the cost of her insurance will rise to PS460 when she turns 80. There are policies that cater to older people. Age Concern, Saga, and Help the Aged are three examples. However, an online broker can provide all the details and help you.