Car Insurance: Slashing car insurance costs 'is easy'

Thursday, 04 February 2010

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Despite recent figures from Consumer Intelligence showing that car insurance premiums have soared by 20 per cent over the last year, there are ways in which consumers can save themselves money on a policy, an expert has claimed.

Peter Lawton, consumer editor of What Car?, told the BBC that shopping around for budget car insurance is the first step people should take, adding that many companies "rely on the inertia of customers to turn a tidy profit".

Price comparison sites are a good way to search for cheap car insurance, he added, although they are not the only tool available to consumers.

Mr Lawton also recommended car insurance customers pay more on their excess to keep the cost of premiums as low as possible.

"Playing around with the excess on your policy - the money you have to stump up before the insurance company starts paying out - can have a dramatic effect," he added.

Steve Sweeney, head of motor insurance at moneysupermarket.com, recently urged car insurance customers to protect their no claims discount or they could see their insurance premiums rise by almost three quarters should they have to make a claim.ADNFCR-3010-ID-19597069-ADNFCR

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