Car insurance news
Cheap car insurance not always what it seems
Millions of drivers all across the country are losing out on cheap car insurance because they pay for their cover by direct debit, new research has revealed.
Financial wizards MoneyExpert.com have discovered that a huge 18.5 million people choose to spread the cost of their motor insurance over the course of a year, forking out over one billion pounds in the process.
Four out of five car insurance buyers pay in this way and MoneyExpert.com calculates that doing so costs each motorist an average of £162 extra.
Tim Berry from the internet-based financial advice service explained, "Opting to pay by direct debit seems a good way of spreading the cost of your annual insurance premium. However, people should bear in mind that some insurers believe they are making a loan to customers when they let them pay by this method.
"That means the convenience of spreading your payments comes with a charge which can wipe out any savings you may have earned through researching the market for the best deal."
Rebecca Pearson, spokeswoman for Duck2Water Car Insurance Services, specialists in providing cheap car insurance, said, "Shopping around for your motor insurance is a must, and it's best to do it using the internet.
"But make sure you're aware of all the charges before you part with your money."