Drivers Are Getting a Better Deal – People Power Works!
A recent report by the AA says that the overall cost of running a car’s falling – finally! After years of high insurance premiums, high fuel costs and generally having our monthly income squeezed, we’re seeing some let up.
Their figures show that, for a petrol car worth less than £13,000, the average cost of ownership is now £1,913, down from £2,292 a year ago. Owning a car worth up to £18,000 now costs £3,011, down from £3,350.
The AA say it’s mostly thanks to insurance cover falling, on average around 17%, which is great. For a start, there’s been a crackdown on those “no win no fee” campaigns. Dodgy claims had pushed up insurance premiums, so claims should only be used for genuine, necessary claims and not to make a quick buck. It seems like the crackdown’s working and that drivers are getting the message.
Another thing that probably helps is the amount of information people can now access, particularly online. Price comparison sites mean that you can shop for the best deal and even choose a car based on whether it’s a good insurance deal. Impartial sites like Money Supermarket, Money Saving Expert and the Money Advice Service also help people to understand their cash, the options they have and the best way to get a good deal. Drivers know that shopping around rather than auto renewing their insurance will probably help them save money, as we discussed on Twitter just the other day.
It puts pressure on insurance companies to be competitive and transparent. This makes me really happy, as it’s what we’re all about here at Car Loan 4U. It’s great to see consumers being savvy and companies reacting to the market and offering better deals. Long may it continue!