Moving to a new insurance provider part way through a contract is straightforward as long as you do the maths first.
(PRWEB UK) 31 October 2013
It’s been a year of change for the car insurance industry; tough measures imposed by the government which include a ban on referral fees by claims lawyers and new strict guidelines on whiplash claims have resulted in cheaper car insurance, with prices slashed by over 12%.
With the average cost of annual comprehensive car insurance now £80 lower having dropped from £648 to £568, personal finance comparison website Over50choices is encouraging people not to wait for their renewal notice but to compare car insurance quotes today and consider switching car insurance providers mid-contract.
Speaking on behalf of the website, company MD Ashley Shepherd said, “these welcome and long overdue changes are helping to reduce bad practice within the industry which is having a direct impact on the price we pay for car insurance and will hopefully eradicate our current title of Whiplash Claim Capital of Europe. Consumers can expect to pay a lot less for car insurance today compared to a few months ago so it is well worth using an online comparison site to compare cheap car insurance quotes. Even if your existing policy has an exit penalty, it may still pay to switch before your contract is due for renewal.”
An exit penalty is a fee many insurance companies impose on customers who leave a contract before its agreed completion date. Whilst some insurers do not charge exit fees, others charge between £25 and £50.
Ashley goes on to say, “Moving to a new insurance provider part way through a contract is straightforward as long as you do the maths first. Look at fees that may be incurred by switching and any impact on your No Claims Bonus entitlement; for example would switching mean having to build another year’s no claims bonus from scratch. Then compare this against the savings you could make by moving to a new cheaper car insurance provider. If you save money, then the switch could be worthwhile; if not, wait until your renewal notice and then compare car insurance quotes. At the very least we all should make a habit of comparing insurance prices on a yearly basis as the savings you make can be quite substantial”. For more information on car insurance, visit http://www.Over50choices.co.uk.
In addition to changes brought in earlier this year banning the referral fees claims management companies and lawyers have previously been allowed to pay insurers for details of accident victims and the reduction in premiums as a result of the EU ban on gender based pricing; Justice Secretary Chris Grayling has just announced another crackdown on Whiplash fraud which will see the introduction of a new independent medical panel responsible for validating future whiplash claims.