Car insurance cost is a big weight in the heads especially in UK, especially in young drivers. While purchasing a car is one thing, there is always the factor of covering it securely and the money that goes into premiums every year. You know this and the car manufacturers know this too.
Costly Lure of Free Car Insurance in UK
That is how they came up with the little trick to lure you into buying a car from them—to give you free car insurance for an entire year! Gone is the age factor, the weight of insurance costs and the problem to secure insurance elsewhere and all other factors that come with it for an entire year. Many people fall for this little scheme thinking they can worry about the factors that influence car insurance premiums a year later.
But now that you found this article, you are probably in doubt about the insurance offered for free by car manufacturers. There are but a few things you need to know about these free insurances provided by manufacturing companies or their associate companies.
Age still matters a year later when you need auto insurance. While there is nothing that reduces your insurance charges because of this scheme after a year, you could be charged a hefty amount to issue insurance considering factors like age and the type of car. Youngsters are always after the shiny red sports car but did you know that these cars are of a high insurance group number, which coupled with your low age could render you without insurance or with unaffordable premiums? While shopping for a new car, always keep in mind about the costs incurred in insurance premiums. Unless daddy is gifting you lifetime insurance along with your new car, you must consider the cost of insurance after the one year period!
Hire-purchase payment plans also come with stringent policies when insurances are concerned. You are required to buy car insurance from a particular provider only, in most cases. At the end, this would add up to the overhead in your budget, because these insurances do not come for cheap. You must evaluate your budgets if such a clause is placed by your manufacturer because the insurance costs will definitely be way more than what you would normally pay.
Also, the free insurance term period renders you without a no-claim bonus for the entire year even though you had a clean record. That means an entire year of clean driving has gone by you without any effect on the insurance premium charges later on. Despite all this, it is pretty tempting to go ahead with the manufacturers deal and forget about the problem of insurance for an entire year. While we are looking for a new car, we obviously want just the best and having no premiums to pay on insurance is pretty tempting. The least you can do is go through the fine print carefully to ensure that you are being given complete coverage and all cases of claims will be covered by the company.
Also remember that as badly as you want to buy that new car, the car company wants to sell it to you. So you can bargain away to glory for free extras and upgrades in the insurance if you know what you’re doing despite the big words being thrown around like ‘corporate policy’ and ‘win-win situation’ blah-blah. Good luck and see you next year.