(PRWeb UK) April 8, 2009
March is the peak season for buying car insurance and for many people insuring their car is their most expensive monthly insurance outlay, with the average motorist spending £31 a month to financially protect themselves in the event of an accident. But to help ease increasingly tight monthly budgets, over a quarter of motorists (27%) have taken steps to reduce the cost of their policy whilst ensuring they are still legally covered, reveals research by Saga Motor Insurance*.
Almost one in ten (8%) money-savvy motorists -- 2.7 million drivers** -- have increased their voluntary excess in order to reduce their monthly premium. A further 8% have downsized to a car with a smaller engine, enabling them to lower their monthly insurance bill as well as reducing their petrol and tax costs. An additional 4% of motorists have removed named drivers from their policy.
The average monthly car insurance spend for over 50s is around £10 per month lower than those aged under 50, however exactly the same proportion of over 50s are taking steps to cut their motoring premiums as the younger generation.
Rather worryingly, one in twenty (5%) drivers has removed optional extras from their insurance, such as breakdown cover or legal expenses, in a bid to streamline their spending. However this can prove to be a false economy, considering the average person breaking down without cover, pays almost £90 to have their vehicle recovered***.
Despite the potential savings three quarters (73%) of drivers haven't taken any steps, however simple, to try and cut the cost of their premiums.
Andrew Goodsell, Chief Executive, Saga Group, commented: "Many more people could be taking some simple steps to reduce the cost of their car insurance. Remembering to update your car insurance policy as your needs change can help save money on monthly premiums at a time when many people are looking to reign in their spending. However it's important to ensure the quality of the cover isn't compromised and the policy still meets all your needs."
Take a few easy steps to reduce your motor insurance premium:
*Analysis carried out by Opinium Research on an online poll of 2,050 British adults between 17th to 19th February 2009. 8% of motorists have downsize their car to save on reduce their insurance premiums.
**8% of 33.7 millions motorists in the UK (Department of Transport) = 2,696,000 motorists
*** Figures provided by the AA
****(17% of people would have received at least an 11% online discount for motor or motorhome insurance compared to getting a quote over the telephone -- Saga survey of new business quotes, August 2008). Discounts are subject to a minimum premium of £105 inclusive of Insurance Premium Tax (IPT).