Car insurance switching more fruitful than ISAs

Car insurance switching more fruitful than ISAs

Looking for the best available car insurance deal is more cost effective than investing savings in a Cash ISA, price comparison site GoCompare.com claimed yesterday.

British motorists are wasting up to £1 billion per year on unnecessary insurance costs by not taking the time to compare prices, GoCompare.com’s research found.

One in five (19%) drivers renew their current policy without bothering to get a quote elsewhere.

This is despite the average driver being able to save £207 on car insurance by shopping around – 59% more money than the interest paid by the market’s top Cash ISAs.

Investing the maximum £3,600 allowance into the best available Cash ISA (3.61%) for one year would yield returns of £129.96.

Hayley Parsons, Gocompare.com CEO, said: “Our experience shows that insurers almost always offer more attractive quotes to new customers than they do to their existing clients.

“However, hundreds of thousands of motorists still mistakenly believe that because their insurer gave them a great deal in the past they are bound to still be competitive now.

“At the very least, shopping around will enable you to see how your renewal quote compares with a much wider range of policies.”

However, while GoCompare may be keen to promote their own price comparison site, we’ve already seen reports of quotes being inaccurate, and a number of deals not available through such sites.

Direct Line makes a point of not being represented on any comparison site, even though it is one of the UK’s largest car insurers, and the FSA is already looking into whether comparison sites need tougher regulation to ensure they are providing accurate information for consumers.

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