Car insurance Deal or No Deal.

mrpud

I have just done my yearly search for car insurance as the normal happened ESure upped my price by over £100 from £ 275 too £384 . I used money supermarket & have gone with the AA for just over £240 I pay monthly before you ask . So I saved around £35 on last years cover price , Now this is we’re it gets interesting im 55 years old . So twice this month SAGA have contacted me offering me a 3 year deal at a fixed price . All well & good I hear you say we’ll option 1 is  £332 per year for 3 years graunteed not to increase. 
Option 2  £276 for a year (save £54)
i may be daft but does anybody think option 1 is a good deal .
As Martin would say it pays to shop around what would you do ?

DUTR

Why are you so sure you will have the car in 3 yrs time? 

chrisw

You pays your money and you takes your choice. 

The downside of option 1 is that if anything changes such as you change your car, the premium might become very uncompetitive. Also over 3 years it could potentially cost you more than £150 extra.

I personally would go with AA and gamble I could get it cheaper each year. Plus I'm a commitment-phobe. I would also try paying annually if you can, that would save quite a bit.

Car_54

If I've understood you, you've just taken out cover with the AA for £240. Are you suggesting cancelling that (with the inevitable charges) for something more expensive?

What does "£276 for a year (save £54)" mean? Save £54 against what?

Before you commit to a three-year deal, consider that prices elsewhere may come down.

foxy-stoat

I would of thought that you need to add at least 5 years onto your life before you will need to use Saga....or am I missing something.

DUTR

foxy-stoat said:

I would of thought that you need to add at least 5 years onto your life before you will need to use Saga....or am I missing something.

Saga was 50 but it could have changed touch wood, I've had no invites from them since turning 50.

Sandtree

I cannot comment on the Saga guaranteed premiums because I've never read their T&Cs but I did analysis on a similar "guarantee" a few years ago and in that case the guarantee didnt apply if either you made any premium impacting changes (eg move address, change car etc) or made a claim (regardless of fault). The actual proportion of cases where the guarantee would apply were much smaller than most thought.

The other consideration potentially if the the FCA continue down the path which they appear to be taking and ban differential pricing for new business and renewals which you'd imagine will inevitably lead to an average being applied and so new business quotes increasing.

foxy-stoat

I meant there shouldnt be any issues getting competitive prices from the market for under 60's, even under 70's.