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Get ready for an avalanche of "new style" car insurance policies to hit the marketplace. One of the very first insurers to enter the fray is Tesco, with the announcement of its new "no frills" policy. Where Tesco leads, other people will swiftly follow in their search for new customers.
The AA doesn't appear too impressed with Tesco's offering, saying that the excess is seriously high and if you look around you could acquire the usual fully comprehensive for the exact same price. Taking the opposite stance is Norwich Union who believes that other insurers will compete with easy, non-gimmicky, cover. Acquiring ahead of the competition, they have been watching the patterns of 5000 motorists over a two year period and they are starting to give new policies based on their study.
Both of these insurers will aim to keep at the top of the "Top Buy" tables and the resulting competition between insurers to keep the premiums low and gain the business will be fascinating to observe.
What is it that's so unique about these new policies?
Initial of all there's Tesco's new "Value" car insurance. This is a sort of "hybrid", coming higher in the scale of cover than basic third party but stopping short of the even more usual fully comprehensive. For example, if your vehicle is off the road, you won't get a courtesy auto, it doesn't cover young drivers and at £475, the excess is a lot greater than usual. Your no-claims discount will not be protected and if repairs are necessary these can only be carried out by designated garages. Regular guarantees on repairs are 3 years, but they have reduced this to only 12 months. If you can accept these restrictions, Tesco say there will be a saving of 12% on its regular cover. A further proviso is that you should get cover on-line.
On supply from Norwich Union is a young driver's policy. Not out there to new shoppers for the time being, consumers are charged according to their driving patterns. It has been discovered that younger drivers have a greater likelihood of accidents at night and so there is a charge of £1 every time they drive between the hours of 11pm and 6am.
Direct Line, not to be outdone, has similar new goods coming on to the market.
It all sounds slightly confusing and you have to take into account what you're missing out on in the way of cover. It is achievable for the a lot more conventional fully comprehensive policy to be reduced if you're willing to sacrifice some of the cover or pay a greater excess. These deals are out there on-line and effortlessly accessible, but why tie yourself to one enterprise? If you search on the online for a auto insurance broker and are specific about your requirements, they'll do the research and come up with the appropriate deal for you.
Older drivers have automobile insurance troubles too. The Government may possibly be contemplating regardless of whether standard eyesight and specific other medical checks should really be carried out three yearly. The Association of British Insurers have requested this as they really feel that with declining eyesight and age, responses could be slower and thus older drivers could be far more at risk of accidents. Age Concern, a charity representing the elderly, argues against this, believing that fitness to drive will need to be based on skill, not age.
The Association of British Insurers report that in reality older drivers have extra accidents per mile than drivers in middle age and also state that there is a greater likelihood of injury or death resulting from a crash, both for them and other road users.
From the age of 60, car insurance premiums will start to rise as underwriters begin to get wary of taking on new clients. The AA tell us that, as an example, a woman of 21, who pays a premium of £326, will locate it decreased to £197 at 60, but by the time she reaches 80 the price will be £460. There are policies designed to serve the needs of older persons, Age Concern, Saga and Assist the Aged are just 3 of them, but again, if you contact an on line broker, they'll have all the facts and be able to supply assist on this.
