Motorists warned over ‘scorpion’ car insurance - Car insurance - News - Moneyfacts


Motorists warned over ‘scorpion’ car insurance

Motorists warned over ‘scorpion’ car insurance

Category: Car insurance

Updated: 26/11/2012
First Published: 07/02/2011

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Motorists who intend to cut back on car insurance in 2011 have been warned not to get stung by 'scorpion' insurers.

Recent research revealed that one in ten motorists plan to cut back on their car insurance cover this year in an attempt to save money.

Car owners said they were ready to remove legal protection or courtesy cars from their policy and increase their voluntary excess in order to cut costs.

However, Your Cover, the insurer behind the research, points out that in many cases, additional extras such as legal protection, are automatically included in insurance packages, so customers have no choice as to whether they want to pay for them or not.

Instead, the insurer suggests that motorists might be able to keep the same level of cover and still save money if they shop around for their car insurance.

But while pointing out that some insurers are willing to be flexible with their car insurance cover, motorists are also warned to take great care over the choices they make.

"We would advise motorists to think carefully about the kind of car insurance policy they want in terms of cover and to avoid insuring themselves with a 'scorpion' insurer, where there could be a 'sting in the tail'," said Andy James, the insurer's head of direct customer marketing.

"For example, a policy may seem cheap, but there is a wide variation in the level of charges imposed by insurers for things like mid-term adjustments, cancellation fees and paying by direct debit.

"These can all make a policy much more expensive in the long-run."

Mr James went on to point out that more than half of the people surveyed said that shopping around online had made it easier to find cheaper car insurance.

"Motor insurance is one area where it is possible to save money and there is a lot of choice out there," he added.

If you want to cut your motoring costs, take a look at our car insurance comparison service.

Compare car insurance providers

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Car insurance premiums race ahead

Car insurance only ever seems to be on the rise, and unfortunately, this upward spiral shows no signs of ending any time soon. Instead, average premiums have ramped up again – and they’re expected to do so further in the months ahead.

Car insurance premiums rise by £39 in a year

Car owners are being urged to shop around for their insurance after the latest figures from insurance trade body the Association of British Insurers (ABI) revealed premiums had increased by 10% in the past year.

Car insurance costs hit new high

For many people, car insurance costs seem to be only ever on the rise - and unfortunately, this trend looks set to continue, with new figures revealing that car insurance is rising once again – and that the average premium has now hit a record high.