Vehicle news
11/02/2011
Insurance for cars and "scorpion insurers"
The phrase ‘scorpion insurers' may be an expression which you are unfamiliar with but if you are a motorist looking to save money on insurance for car cover it may be one you'll be hearing soon.
Research by a British insurance company has shown that one in ten motorists are now trying to save themselves money by cutting back on their car insurance premiums. Customers were willing to cut courtesy cars and legal protection from their policy, in addition to increasing their voluntary excess, in order to try to save money.
The phrase ‘scorpion insurers' comes from where it has been found that, in numerous cases, additional extras, such as legal protection, are automatically added to the insurance package, giving the customer no choice in whether they pay or not. This extra hidden fee is "stinging people in the tail" says an insurer's head of direct customer marketing.
Insurers advise customers that in order to keep the cover they have with their current policy, and save some money, the easiest solution is to shop around. Of course many insurers are flexible with their car insurance cover, but motorists are being urged to take great care in the choices they make.
A policy may appear cheap, however, on closer inspection, there may be a range of charges issued by insurers such as cancellation fees, mid-term adjustments and paying by direct debit which cannot be opted out of. These factors can make a policy very expensive in the long run.
A car insurance authority noted that in a study of UK drivers, over 50% of people surveyed were more satisfied with the policy they found after shopping around online to see what was available.
Having insurance for car accidents or theft does not need to be excessively expensive. There are many companies, such as duck2water, who can provide cheap vehicle cover, so don't get caught by "scorpion insurers".