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Advised To Select Insurance Carefully
Despite a number of female-only car insurance providers claiming they can bring significant savings to women drivers, a new set of statistics indicate that doing so could actually increase their financial pressure.
According to research conducted by MoneyExpert, the average price for annual cover on a 2002 Citroen C5 offered by the top four women-only providers stands at some 279 pounds. Conversely, the typical general insurance premium accounts for some 207 pounds. As a result, it is possible that those female drivers who believe that choosing an insurance company catered solely for women will guarantee to save them money could find that they struggle more with their finances. |
What's more, such a rise in costs could well see them struggling to service demands for payment on utility bills, mortgages, personal loans and other areas of spending. However, monetary difficulties may be even more pronounced for those taking out a policy with Girl Motor, as the study shows cover for the Citroen stands at 338 pounds, in comparison to the 198 pounds offered by general provider Swift Cover.
The study also revealed similar results when taking out cover for a 2002 Ford Focus. According to MoneyExpert, the typical price offered by a general insurer stands at 161 pounds, with the lowest premium (offered by Swift Cover) accounting for 146 pounds. On the other hand, the average cost of the four best women-only insurance policies will set consumers back by 217 pounds. However, the most expensive option out of these providers may well see motorists struggle even more to make loan repayments as it will set them back some 256 pounds.
Commenting on the figures, Sean Gardner, chief executive of MoneyExpert, said: "With a number of high profile advertising campaigns, women-only car insurers have begun to capture a significant share of the car insurance market, but by going straight to these providers female consumers are ruling out many of the biggest names in the insurance market and some of the best value policies on offer.
"Women looking to take out car insurance should focus on product details and pricing first rather than the insurer's customer base. A large number of insurers will offer cheaper policies if you voluntarily accept a higher level of excess in the event of a claim. Buying online can also result in big savings which can range from ten per cent to 20 per cent in some cases."
However, the price comparison website warned that although general policies can be cheaper, motorists should still take the time to check the small print of their premium to ensure that they are comfortable with what they have signed up for. Should they fail to do so, drivers may find themselves paying out again to cover expenses that they believe came under the conditions of their insurance, such as a complimentary vehicle, which in turn may cause them to struggle to make loan and mortgage repayments.
Consequently, those concerned about their ability to afford the cost of motor insurance as well as the other costs associated with having a car may wish to consider applying for a personal loan. Earlier this month, Steven Baillie, head of loans for Sainsbury's Bank, suggested that taking out a personal loan is an advisable finance method for those wishing to purchase a vehicle. However, he urged consumers to ensure they take the time to get the deal which is right for them. |
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