What Everyone Needs To Know About Car Insurance >

Car Insurance Is The Only Saving You Can Make In Motoring Costs

That's why I've decided to publish a series of articles about car insurance.

There are 3 types of car costs. I remember them as DIM. D = Depreciation. I = Interest. M = Maintenance.

When you sign-up for a car, you're subscribing to these costs every year for life. For example, you have to buy car insurance every year, it's a legal requirement. It gets worse. There's nothing you can do about it. Let me explain.

Depreciation. When you buy a car of a certain type it comes with a certain type of depreciation. The used car market will decide the level of depreciation. The used car market has lots of buyers and lots of sellers so it's a true market which can't be controlled by buyers or sellers. Certain cars go in and out of fashion. It's difficult to predict supply and demand and used car prices.

One answer is to take care of your car. It can be worth about £1,000 over 3-years. But that's the difference between the extremes of poor and good care.

Interest. A car costs interest which ever way. Some pay interest to borrow the money. Others lose the opportunity of earning interest when they pay cash. The cost is determined by economics, banks and the market.

Maintenance. By maintenance I mean the cost of keeping a car on the road.

Vehicle excise duty is determined by CO2 emissions and the price of each band is set in budgets.
Fuel consumption is determined by the type of car you buy. The market sets fuel prices to which the government add a hefty tax. You can make savings with care but again you're looking at the difference between extremes.
Servicing is determined by the type of car. You can find people to do the job cheaper but usually they don't have all the tools to do the work completely which normally means increased and unexpected expense later.
Replacement parts. Certain parts inevitably wear out. Again care could be the answer but again we're talking about extremes.

Car insurance is the only cost where you might make a significant saving. I've witnessed a person paying £800 against the highest quote of £2,800. Another paying £400 against many quotes of £1,600. And a price of £170 as opposed to a renewal quote of £480. I'll tell you the stories another day.

They're huge savings. And you can make them every year. £2,000 might be the interest payments on a new small car financed over 5-years. £1,200 could fuel a small car for 12,000 miles. £310 will probably cover a years servicing and replacement parts.

All you have to do is get in lots of free car insurance quotes. You can get online car insurance quotes and save the cost of telephone calls. I'm not talking about just going for cheap car insurance quotes. You have to compare car insurance quotes with care.

I'll be back to talk about 'how' later.

Before you go shopping for car insurance quotes you need to answer some simple questions.

Regards
Ralph

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