Free car insurance
There are many reasons why shopping for car insurance can be a chore: rising premiums, every one of a plethora of companies offering you the ‘best deal’ and the knowledge that even in the best case scenario, you are going to be parting with a considerable sum of money. Whether you’re a conscientious driver with a healthy no claims bonus and a cheap renewal or a young driver facing a sizeable quote, everyone would like a discount and the prospect of free car insurance can be particularly tempting. With that in mind, here’s a look at some of the different aspects of such offers.
A typical offer
A typical offer you could expect to find from a number of well-respected car manufacturers is 12 months free car insurance when you buy a new vehicle. The terms and conditions of the offer are likely to include that the driver needs to be over 21 and have been in possession of a driving licence for at least a year. Different offers will include various terms and conditions such as the minimum cost of the car, strictly UK driving and specific repayment plans.
The average price of a car insurance policy for drivers over the age of 25 is £924 a year (or £77 a month); to not have this being deduced from your account on a monthly or annual basis can obviously be a very attractive prospect. The most quoted reason for rising insurance prices has been the adverse weather, and therefore driving conditions over the past couple of winters. As most offers for free car insurance are only with brand new cars, it’s likely that a new vehicle will be equipped with the necessary features to be able to cope with the weather and therefore reduce the likelihood of having to contact your insurance company.
Because typical car finance plans can extend as long as five or even seven years, a year’s free car insurance may save a considerable amount of money in the short term, but once that period has expired, the cost of an insurance premium on a year-old car may be much higher than expected. Combine this premium with the continuing car finance plan and the total outgoings may amount to more than initially thought. If you are going to buy a new vehicle regardless of the insurance offer, then the promise of saving on a premium for a year can certainly be used to influence your decision of which model to buy. However, if you would otherwise buy a used car and your insurance separately, compare your costs after the offer has expired, not just during the free cover.
Rather than be tempted by a seemingly great offer, spend time researching different types of offers online, both on cars and insurance policies. There is no one policy that is perfect for everyone; the only way to find the best one for you is by comparing; use a car insurance comparison website to quickly and efficiently search a number of quotes and find the best one for you.