Car owners are encouraged all the time to shop around for the best deals when it comes to renewing their motor insurance and recent figures suggest that those that do, can save around €240 a year on new policies.
In the UK, some motorists have found a way around the car insurance renewal costs and rising fuel bills, by selling their car and becoming a member of a car club. Membership to a car club entitles drivers to the rental of a vehicle whenever they wish and the only fee they will be asked to pay is for the annual membership and a small hire cost.
The average cost of running a car in the UK has risen to £2,539 a year, so motorists are taking advantage of the savings they can be made by joining one of the clubs, whose eligibility criteria involves them having to have held a full UK driving licence for at least one year.
Car club organisations claim that they can help motorists who only clock up less than 6,000 miles a year, save up to £3,500 annually.
Although this appears to be a money saving scheme, car owners should always shop around for cheap car insurance renewals first and be sure that they are not missing any potential savings.
Despite the launch of car clubs in the UK, it has been revealed that vehicle purchases are set to increase by nearly 50 per cent. A recent survey has shown that vehicle purchase are set to rise by 47 per cent in the six months leading to August 2010, which is significantly higher than the last period surveyed between September 2009 and February 2010.
This is likely to see a large number of requests for amendments to motor insurance policies in the UK, with the used car sector expected to enjoy a significant boom thanks to low vehicle sales for new models in 2009 leading to a growth in the second-hand market for owners and buyers alike.
One insurance expert said, “The decline in new car sales in 2009 seems to have generated a better market for second-hand sellers. The likelihood is that many people will now be surprised at how much they can get for their existing car and will be looking to upgrade.”
Car insurance policy holders are thought to be spending a massive €55.4 billion worldwide, on new vehicle purchases, which is 25.9 per cent higher than for the previous six months.
