Running a car has never been cheap but the rising cost of insurance means that some drivers have had to resort to loans to pay their premiums.
Car insurance companies have been forced to raise prices because of the increased expenditure that many have faced due to personal-injury claims as well as fraud. Some sources claim that despite the high premiums, some insurers make little or no profit because costs have risen so high.
However, insurance is a necessary evil as it is illegal to drive on British roads without it. The laws have recently changed and it is now also illegal to own a car without insuring it, even if you do not intend to drive it.
The only exceptions are vehicles for which a Statutory Off-Road Notification has been completed and the car is kept in either a private drive or garage. Any vehicles left parked on a public highway are required to have insurance, even if they are never driven.
Loans are one way to cover the cost of a high premium but it is worth comparing different types of credit. Banks and finance providers add interest to their loans, so you will be paying more for your insurance in the long run. But car insurance companies also add an extra if you opt to pay your premium in instalments, so it is important to weigh up the comparative costs. [Read more…] about Avoid Paying High Insurance Renewals