Drivers are being warned not to be seduced by big discounts on comprehensive car insurance sold online, as premiums soared nearly five times the inflation rate in the past year.
Of the 53 car insurers analysed by ratings firm Canstar, 17 offered a discount of between 10 and 25 per cent for buying online, and eight offered cash savings of up to $100.
But Canstar’s Simon Downes said many of the cut-price deals – increasingly attractive with rising premiums – came with “potential traps”, including the fact they usually lasted only one year.
“After that, your premiums are likely to increase. To ensure you’re getting the best deal possible, shop around and don’t fall into the trap of automatically renewing your cover.”
Any minor discrepancies when entering personal details online could lead to the “nasty surprise” of a disputed claim, he said.Tags: