20 June 2008 / by Rachael Stiles
As the cost of petrol and diesel goes through the roof, hard-up drivers can off-set the rising costs of motoring with cheaper car insurance premiums.
If drivers shop around for car insurance and reduce the cost dramatically, they can completely off-set the additional costs of filling the tank over the last 12 months, according to Gocompare.com.
While it mentioned nothing of future fuel price increases to come, the research found that the average driver of a petrol car is £196 worse off as a result of increases in the price of fuel in the last year, but that car owners could save as much as £222 each on their annual car insurance bill, surpassing the additional cost of fuel.
In June 2007, a litre of petrol cost an average of £0.97p, compared with £1.12 a litre in May, and drivers of diesel cars are even worse off, rising from £97p per litre last year to £1.24p in May 2008 – a total price rise of £233 a year based on an average annual mileage of 12,000.
Hayley Parsons from Gocompare.com said: “Everyone is getting angry about the price of petrol and diesel rising but our advice is to use two fingers constructively by picking up your mouse and clicking on an insurance comparison site. You can shop around to save 5p a litre on your petrol each time you fill up, but it still won’t off-set the full cost. It is also a lot more time consuming than spending ten minutes on an insurance price comparison site when your renewal quote arrives in the post.”
The case for switching car insurers is compelling enough at the best of times but with motorists facing increased costs you have to look to save money where you can. Checking your renewal price by using an insurance comparison site is one of the quickest and easiest ways to try and save money.”
© Fair Investment Company Ltd