UK drivers may wish to begin considering innovative ways to save money on motoring costs, experts say, as discount car insurance quotes are becoming as scarce as a a garage selling cheap petrol.
Car insurance rates increased by 31 per cent last year, according to official industry figures. The first few months of 2011 also experienced similar jumps, according to one car insurance comparison website, which has gone on to urge drivers to consider managing their outgoings through monthly installments.
However, the website’s insurance experts warned that motorists need to find the best available monthly option in order to avoid making a wrong, and possibly quite costly, decision. A large number of car insurance companies charge a fee to the customers for paying an annual insurance premium on a monthly basis, which could add as much as 10.68 per cent to the total cost of the initial premium price.
Not every insurer charges such high fees, however, according to the comparison site’s insurance expert. Policyholders who shop around for the best deal can find insurers that charge as little as 5.34 per cent for the privilege of paying annual premiums on a monthly basis, the expert said.
The expert also recommended other innovative options for paying monthly, such as the use of a credit card with a 0 per cent purchase interest rate. However, he recommended restraint in such a case, as motorists need to maintain money discipline with such a plan or risk being caught out when their card’s promotional period runs its course and they still carry a balance from paying their insurance policy premium.
Motorists were also told to look over their insurance policies for any small print, to make sure there are no exclusions that could trip them up in an inopportune moment.