Finances seem to be heading towards UK motorist companies after Ensure announced plans for increasing their share by two fold in the UK’s car insurance market. But this move is likely to cause a price war since internet-only insurers are moving on to the consumer savings on the basis of their low overheads and specialist-insurers are offering discounted prices to their target group of customers.
Gearing up to Drive Down Costs
Norwich Union is offering a trial scheme, which is pay-as-you-go scheme, this seems to have caught on by those motorists that are comparatively. The initial cost of the pay-as-you-go-scheme is hundred and ninety-nine pounds for the small box, which is fitted in the driver’s booty to document when and how long the person drives his car. The box is satellite linked and sends standard updates to it by tracking the device and the satellite further sends this information to the insurance company. A customer of the trial package stated that he got a memo regarding the mileage of the car and whether if the person had been driving in the evening or during the peak hours of the traffic. For those motorists who use low mileage, this insurance offer can turn out to be beneficial as it can reduce the premium he otherwise would have to pay. Whereas for those drivers that consume a high mileage, they would still have to look for a deal that suits them the best.
Alas, last year five million motorists did not put in the research for the different kinds of premium available to them and ended up losing a hundred and eighty pounds on an average. Once one comes to an end of their one year free insurance offer by a dealership company, they need to start looking for other forms of insurance premiums that could work in their benefit, instead of accepting the quote offered by the manufacturer’s insurance company. Sites such as Money net can compare hundred insurance providers in one go. One cannot only go for the best deal available, but also curtail certain discounts from the site. Government is on a constant look-out for minting money from motorists, thankfully due to the neck-to-neck competitions between the insurance companies there is a reduction in the insurance premium.