Beware The Car Insurance 'Special Offers' That Cost You More
02 Jun 09

Just as supermarkets are tempting customers with ?buy-one-get-one-free? deals, car insurance companies are also trying to woo motorists with special offers such as multi-car policies and 52 days? free insurance. But research by swiftcover.com shows that many offers are not as special as they claim to be, with drivers still paying too much for their insurance.

For example, swiftcover.com found that:

? Admiral?s multi-car cover policy is ?283.47 more expensive than swiftcover.com when insuring a Ford Fiesta and a Ford Mondeo ? two policies with swiftcover.com would cost a total of ?392.01 compared to ?675.48 for Admiral?s multi-car cover1

? Direct Line?s 52 days free insurance special offer is still ?110.05 more costly than swiftcover.com when insuring a Ford Mondeo ? insurance with swiftcover.com would cost ?185 compared to ?295.05 with Direct Line2

Sales of swiftcover.com?s low-cost insurance have grown by 31% since the start of the year as motorists search for cheaper insurance. But the insurer says that although it is good that more people are now shopping-around for quotes, they should be careful not to get sucked into deals that actually don?t save them money.

Tina Shortle, marketing director of swiftcover.com, explains: ?Competition in the motor insurance market is fierce at the moment, with many companies offering so-called ?special offers? to entice customers. However, these deals can confuse motorists as to the true costs ? and potential savings ? of their insurance.?

swiftcover.com?s special offer warning forms part of the insurer?s credit crunch tips for cutting your insurance costs. Shortle continues: ?Getting the lowest possible insurance quote is one thing, but there is a lot more drivers can do to keep their insurance costs down. Our credit crunch tips will help people identify where else they can save money.?
swiftcover.com?s credit crunch motor insurance saving tips

1. Always compare insurance quotes ? Even if you use a comparison website, you should get a couple of quotes from other insurers to compare against. And don?t just accept the renewal price from your existing insurer, it?s unlikely to be the cheapest

2. Beware of expensive ?special offers? ? 52 days? free insurance might sound like a good deal, but if the insurer charges you much more in the first place, it might not be a saving. Always shop around, no matter how good the special deal seems1

3. Multicar policies are not necessarily cheaper ? multi-buy offers might save you money in the supermarket, but it?s not always the case with motor insurance. swiftcover.com found that drivers could save by choosing separate policies2

4. Downsize your car, not your insurance ? If you are downsizing to a smaller car to save money, don?t cancel your insurance as you?ll end up out of pocket due to cancellation fees. Shifting from a Ford Mondeo to a Fiesta and sticking with your existing swiftcover.com insurance could save you ?1113 compared to cancelling

5. Drive green and save money ? swiftcover.com encourages drivers to become more environmentally friendly by giving them a 10% discount on insurance for greener cars such as the Honda Insight or the Toyota Prius. If you?re making use of the Government?s ?2,000 scrappage rebate, consider one of the latest hybrid vehicles

6. Don?t go for His n? Hers insurance policies ? You might be able to lower your insurance costs by adding your spouse to your own cover instead of both having separate cover. Compare the quotes to see which offers the best deal

7. Don?t drive without insurance ? The police know if you are driving without insurance and 150,000 uninsured vehicles are seized every year, so being caught could result in a ?1,000 fine, a driving ban and the destruction of your car

8. Be careful with your voluntary excess ? Choosing a higher voluntary excess could bring the cost of your insurance premium down. But if you make a claim you will have to pay the excess out of your own pocket outweighing the initial savings, and don?t forget you will also have to pay the compulsory excess as well, so it can all add up. So choose a voluntary excess that you can afford in the event of a claim

9. Don?t pay for what you don?t need ? Lower insurance costs by ditching extras you don?t need, such as overseas cover. Check the small print and if you?re not sure what certain features are, ask to have them removed if they don?t offer any benefit

10. Keep you car in tip top nick ? Good maintenance can save you money in the long term. For example, a chip in a windscreen can usually be fixed for free on most insurance policies, whereas replacing the entire glass will cost you your excess fee