The inevitable question of how to save on car insurance premiums holds itself tight in front of the UK drivers. As the car insurance cost rises every now and then it becomes difficult to manage the finances. However, experts suggest that those who use cars for a small time period should switch to pay-as-you-go car insurance to minimize their motor insurance cost in UK. Statistics reveal that by not choosing pay-as-you-go insurance, drivers pay at least £300 a year extra on their car insurance premiums.
Although, the rising cost of motor insurance can take a breather due to the change in Ogden rule, it may still suffer from the much higher annual car insurance cost. Therefore, it is but natural to switch to car insurance providers that offer cheaper premiums. According to reports, there is a huge section of UK drivers who use their car for less than an hour a week. These may include elderly citizens, house wives, stay-home moms and the likes that don’t need to drive a lot. However, as they have a comprehensive car insurance or third party car insurance cover, they pay nearly £300 more than what they would for a pay-and-go-insurance.
As per research by Cuvva, the pay-as-you-go motor insurance app, a total of 821,000 drivers in the UK do not use their car for more than an hour a week. When calculations are made keep the annual insurance policy in mind, it is discovered that drivers pay £16 an hour for being on the road taking the annual car insurance premium to £847. This certainly does not fall in the category of cheap car insurance only because the drivers choose a full or third party insurance cover.
Instead, if the same drivers chose the pay-as-you-go motor insurance then they cut down the premiums by a £277 and their annual payable amount equates to £570 only. This calculation is made considering that the UK drivers make just one trip a week. The city of London has a huge proportion of such drivers and nearly 7% of households use their car for just one hour a week or less. Second comes the drivers of Northern Ireland where 6% households use the vehicle for an hour a week.
Freddy Macnamara, founder and CEO of Cuvva, explained the gravity of the matter by saying that “A lot of drivers only need their car once in a blue moon, yet they often end up paying the same price for their insurance policy as someone who is constantly on the road.
“This is clearly an unfair situation and the insurance industry needs to start promoting a more flexible approach, encouraging drivers to seek out cost-effective insurance policies which suit their needs.
“At a time when high inflation and low wage growth are putting a real squeeze on household budgets, the potential to shave hundreds of pounds a year off car insurance through switching from an annual policy to pay-as-you go could be the difference between affording a holiday or not.”
In short, it is wise to choose a car insurance cover that justifies your requirements and discard anything that is less than or more than it. There is no point paying high car insurance premiums when the need of the hour is to reduce the car insurance cost. Another most effective and highly recommended way to save on car insurance cost is to compare car insurance providers and switch.
While comparing you should also check the kind of cover that suits you the most so that you don’t end up splashing extra money on the motor insurance premiums. If you need some assistance in choosing the best car insurance provider in UK then rely on FreePriceCompare, a leading motor insurance comparison expert. We not only suggest the cheapest car insurance quotes online but, also manage the entire switch process so that you can enjoy your work or family time.
As we compare 100+ UK car insurance providers, we are in a strong position to suggest the cheapest car insurance covers that can save you at least £200 a year. Our services are absolutely free and you will find a great team that explains how does car insurance work in UK. If you want big discounts on car insurance cover then visit us at https://freepricecompare.com/insurance/car-insurance/ or call our team of experts on 02034757476.
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