Car Insurance - New Style Policies Cut The Cost

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Get ready for an avalanche of "new style" car insurance policies to hit the market. 1 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 seem too impressed with Tesco's offering, saying that the excess is certainly high and if you look around you could acquire the usual fully comprehensive for the 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 analysis.

Both of these insurers will aim to maintain at the top of the "Best Buy" tables and the resulting competition between insurers to maintain the premiums low and gain the enterprise will be intriguing to observe.

What is it that's so unique about these new policies?

1st of all there's Tesco's new "Value" automobile insurance. This is a sort of "hybrid", coming higher in the scale of cover than fundamental third party but stopping short of the a lot more usual fully comprehensive. For example, if your auto is off the road, you won't get a courtesy vehicle, it doesn't cover young drivers and at £475, the excess is significantly 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. Normal guarantees on repairs are 3 years, but they have decreased this to only 12 months. If you can accept these restrictions, Tesco say there will be a saving of 12% on its regular cover. Yet another proviso is that you must obtain cover on-line.

On give from Norwich Union is a young driver's policy. Not obtainable to new clients for the time being, clients are charged according to their driving patterns. It has been found that younger drivers have a higher likelihood of accidents at night and so there is a charge of £1 each time they drive between the hours of 11pm and 6am.

Direct Line, not to be outdone, has comparable new goods coming on to the marketplace.

It all sounds slightly confusing and you have to look at what you're missing out on in the way of cover. It is possible for the a lot more conventional fully comprehensive policy to be decreased if you're willing to sacrifice some of the cover or pay a higher excess. These deals are available on-line and quickly accessible, but why tie your self to 1 firm? If you search on the world wide web for a vehicle insurance broker and are certain about your wants, they'll do the investigation and come up with the ideal deal for you.

Older drivers have auto insurance complications too. The Government may well be contemplating no matter if typical eyesight and specific other medical checks ought to be carried out 3 yearly. The Association of British Insurers have requested this as they feel that with declining eyesight and age, responses could be slower and thus older drivers could be extra at risk of accidents. Age Concern, a charity representing the elderly, argues against this, believing that fitness to drive 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, vehicle insurance premiums will start to rise as underwriters start 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 come across it reduced to £197 at 60, but by the time she reaches 80 the cost will be £460. There are policies designed to serve the requirements of older people today, Age Concern, Saga and Assist the Aged are just 3 of them, but once again, if you contact an on line broker, they'll have all the facts and be able to give support on this.