The car insurance price trick
I think I've worked out the car insurance industry (industry experts feel free to put me right)...
An insurer offers loss-leading rates for a short spell, sucks in a huge amount of new customers and then hikes the rate when the policy comes up for renewal.
For example, Tesco Personal Finance, a relative new-comer to car insurance charged us a bit over £400 last year on our Honda Civic - the cheapest quote available. This year, it's crept up to nearly £500.
A quick search on the insurance deal finder gave me dozens of cheaper quotes, the lowest was with Swiftcover at £340 which crept up to nearly £390 once I'd put in all the details in on their site (the aggregator tools don't always gather enough info to give the exact premium - and sometimes there's add-ons you might want to pay for).
My colleague Simon Lambert also found Swiftcover was cheapest for his Fiat Punto.
Time for a little wager - what's the chances that Swiftcover isn't the cheapest next year?
- Andrew Oxlade, Editor, This is Money.co.uk
Useful links
>> Our advice on getting the cheapest car insurance
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