While people often bemoan the fact that car insurance premiums are liable to rise, it is important to consider the factors that trigger this. It was recently revealed that a staggering one in ten UK citizens have made false whiplash claims in the wake of a collision, for example, which instantly forces insurers to offset potential losses by hiking prices. This can create a vicious cycle, but the cause or trigger is rarely ever considered when insurance companies are being criticised for their actions.
Why Quality is More Important than Cost when Buying Insurance
When consumers bemoan the cost of car insurance, there is also a tendency to overlook the purpose of this financial product and its importance in the modern world. While no single individual wants to pay over the odds for their car insurance, a far more important consideration is the depth of coverage that you can access. Simply by prioritising and investing in low cost insurance, you run the risk of securing inadequate insurance that ends up forcing you to spend more over time.
Let’s say you partner with a renowned and reputable firm such as AXA, for example, which prides itself on delivering an array of products and policies to suit all potential budgets. They even tailor individual policies to suit customers, so in theory it is possible to invest in diverse coverage for the lowest possible price. If you ignore this simply purchase the cheapest possible option without taking into account the nature of your vehicle and how often you use it, however, you may find yourself unprotected in the event of a collision or unscheduled maintenance requirements.
The Last Word
So how can you avoid this issue? Well the first step is to consider the type of car that you own and your unique user requirements (i.e. whether you drive your vehicle long distances on a daily basis or are an occasional motorist. You should also factor in the type of terrain that you drive on, as these factors all impact on wear and tear over a prolonged period of time.
Then you should speak to an industry expert and service provider about their available policies, and determine which offers a suitable level of coverage that meets your needs. Cash conscious consumers can still choose the cheapest option if they are presented with several viable options, so long as the fundamental principle of value is prioritised over cost.