Twenty or so years ago, the act (or chore) of comparing car insurance premiums involved contacting a specialist broker on the high street called Dave who would run through a list of options on his IBM before hard selling his favorite (and most expensive) option.
Nowadays, comparing quotations is no more difficult a task than navigating to Google or, as the television advertisements remind everyone, a price comparison website. The question is, when searching for car insurance, should prospective buyers go direct, go compare or go for broke?
Young Drivers Must Pay More
Most drivers of advancing years already know the answer, but few probably understand the question. Young motorists are not afforded an opinion because society makes every effort to herd all but the most privileged towards providers specializing in high-risk indemnity and the kind of insurance company that charges four times the value of a vehicle on the basis of the statistics concerning death and serious injury. Road accident compensation and young drivers are certainly no strangers. Comparison websites tend to target drivers aged between 25 and 50, the demographic already suffocating in the clutches of mortgages, pensions and life insurance providers.
Will Comparison Sites Save You Money?
On the surface, price comparison websites are a great idea; after all, who does not want to find the cheapest and most competitive premiums at a time when every aspect of living seems gripped by inflation? The problem with price comparison websites is that, whilst perfectly capable of listing insurers and providing like-for-like quotations, they are fundamentally flawed. Selecting car insurance indirectly almost always costs more than obtaining a policy directly, so users merely compare one inflated price with another.
On the plus side, comparison websites are convenient, easy-to-use and geared towards those who want the appearance of a good deal with none of the work. Motorists who actually want the best deal must do all of the work of a price comparison website without so much as a crumb of the commission paid by insurers.
Finding the cheapest, most suitable insurance package can be an arduous task, so it is arguably the case that price comparison websites justifiably substitute time and effort for marginally increased premiums. What matters is how much extra motorists are willing to spend on commission-heavy insurance, but the first priority should surely be the suitability of a policy for the individual motorist. Cost is virtually irrelevant if the level of coverage is insufficient.
Getting It Right
Policyholders must, for example, ensure that additional drivers are covered without huge penalties being charged or that a courtesy car is provided wherever necessary. Some motorists prefer to protect their no claims discount bonus, whilst others simply want to enjoy the highest annual or monthly savings.
The only way to ensure that cost and cover specifically meet requirements is to obtain direct quotations from insurers. Alternatively, prospective buyers can do away with the internet and its ‘middleman’. Dave is probably still on the high street and he may just have the perfect policy to hand.
This guest post has been written by Denver Burke on behalf of Ead Solicitors. He has been writing articles and content on a variety of topics across the web and is hoping to share his enthusiasm and knowledge on the subject.
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