Driving down car insurance

FOR DRIVERS who use their cars infrequently, the insurance agent Hill House Hammond has moved to cut the soaring cost of insurance. Its new Limited Mileage Policy offers low premiums to people aged 40 and over who drive less than 5,000 miles a year, writes Maria Scott.

The agent, which has found that 25 per cent of all UK motorists do less than 5,000 miles a year, says the new policy offers premiums typically 30 per cent lower than similar mainstream insurance.

A 40-year-old living in the Redhill, Surrey postcode area of RH15 and insuring a 1300cc Ford Escort with comprehensive cover and with three years' no-claims bonuses would pay pounds 203 under the Limited Mileage Policy. This assumes he is only insuring himself.

The policy is underwritten by Municipal Mutual Insurance.

Hill House, owned by Norwich Union, can be contacted on 0345 123111 (charged at local rates).