Debt help: Shopping around for insurance could save money

28/01/2010

Consumers who "automatically accept their renewal premiums for home and car insurance" could risk paying unnecessarily high rates.

This is according to Lee Griffin, business development director of Gocompare.com.

By avoiding paying such unnecessarily high prices consumers could free up money to organise their debt through a debt management scheme.

Mr Griffin added: "Every motorist and homeowner should be challenging their insurer by comparing their renewal quote against those offered by the competition.

"And if their quote doesn't measure up they should vote with their feet and switch."

Mr Griffin's comments follow the release of the latest AA Insurance Premium Index, which has suggested that there is "no sign of car insurance premium let-up".

Buildings premiums were also found to have increased; however, in general contents premiums are cheaper.

Director of EuroDebt Kevin Still commented: "This week the AA reported that the cost of car cover increased by 7% in the final quarter of 2009 – the largest rise since records began. This takes the average quoted premium to just over £1,000.

"Many people need a car just to support their income, especially if they live in rural areas. It is another factor fuelling the need for increased debt advice."

Tags; Housing Debt and Bills,

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