A new study shows that differences in cheap traders insurance policies could be costing some motorists up to an extra £1,500 every year.
According to the study, drivers who don’t do their homework and search the market for the best possible deals, could be paying upwards of thousands of pounds on outdated, over-inflated policies.
Shockingly, the insurance firm that commissioned the probe into motor trade insurance prices discovered that a 20-year-old student hailing from Co Clare in Northern Ireland was paying a difference of €1,974 (£1,464) compared to the cheapest available quote. In contrast, a similarly aged student driving a relatively new Ford Focus managed to cover his car, and secure cover against third-party fire and theft, for just £1,232.
Elsewhere, a middle-aged couple searching the market for an insurer to cover their family car received wildly varying quotes, with one firm offering them cover from £250 and another asking for a comparatively massive £764.
A spokesperson for the online insurance provider who conducted the survey warned consumers to be wary of huge price differences across the motor trade insurance market. The firm decided to study the market after it noticed that the costs of car insurance premiums was beginning to climb. Due to these rising prices, they felt the time was right to run a comprehensive analysis, comparing quotes across a number of insurers in order to determine exactly how much your average driver can save on the costs of their premiums; provided they are willing to scour the market in search of the best possible deal.
To get their results the firm ran a handful of everyday quotes across four scenarios, all of which could be considered average in the current car insurance market. Even they were shocked by the results, which revealed staggering differences between providers. In one extreme case, a driver of a 2009 VW Golf was quoted £430 from one insurer and £1,631 from another; that’s almost four times as much.
As a result of their findings, the insurance comparison firm urged consumers to shop around and compare insurance deals. If they don’t, they could end up paying a lot more than they bargained for.