It's no secret you can find some of the cheapest insurance deals online, with adverts for price comparison sites now a common sight on TV.
Our Driver Power results show that 38.7 per cent of you are buying your policies through comparison sites in the hunt for the cheapest premiums.
Insurance continues to be one of the biggest expenses, and many Driver Power respondents complained about the lack of reward for loyalty among insurers and the need to search around and change policy each year to avoid paying over the odds.
Price comparison websites are cashing in on this and provide an overview of where to get the best deal – or do they? The independence of these websites has been questioned with some accused of having a conflict of interest, according to a recent report from the Financial Conduct Authority (FCA). For example, GoCompare is 50 per cent owned by Esure while Admiral has a stake in Confused.com.
The FCA found no evidence that these insurers had profited from their involvement, but said the websites weren’t always making it easy for consumers to get the right policy. That’s why Auto Express – with help from the British Insurance Brokers’ Association (BIBA) – has compiled this guide to navigating price comparison sites.
To drive down the headline price and get ranked near the top of the site, insurers will add a high voluntary excess on top of the compulsory excess, irrespective of what details you’ve entered. Make sure you check the excess before proceeding with the deal.
Previously, comparison sites told insurers they could only offer their best deal on the sites, but a review by the Competition Commission has put a stop to this practice.
Websites charge a fee to the insurers to appear on the site and cash in by getting successful concluded deals. This fee adds to the amount you pay so ringing the insurer could net you the same cover, but without the site fee added on.
Comparison sites cater for the average motorist, but if you don’t fit into this category you’re unlikely to see the best deals online. For example, if you’ve got a classic car, need driving abroad cover or have convictions on your licence, then trying a specialist insurer is the way to go.
Some sites make assumptions that can pump up your premium. The better sites ask all the necessary questions to return relevant deals, but if you’ve got modifications on the car or you’re not the main user, then the offers you see won’t be applicable.
If you find a suitable policy at a decent price you’ll want to take advantage of it. Check how long any deal is guaranteed for and if it’s guaranteed at all. Once you click through, be careful that the offer in front of you is the same as you’ve seen on the comparison websites, and unwanted extras haven’t been added on or the APR for instalments has risen.
Comparison sites offer one-car deals, but bundling your motors together can score you a good discount under a multi-car policy offered by some of the big insurers when you call up.
Not everyone signs up to comparison sites and so their best offers won’t show up – for example Direct Line or Aviva. Consider using a broker, too, as they can tailor a policy for you.
“It's not all about the headline price. Make sure the cover is right for you.”
Auto Express readers have differing views on price comparison websites. Here's what they told us...
“I am wary of insurers’ renewal procedures. They are often much cheaper on comparisonsites than at renewal time.”
“I always check directly with the chosen provider as they always match the comparison site and usually better it.”
“Ideally, I’d prefer to order it by speaking to someone as searching and selecting categories can be a little uncertain sometimes.”
“You obtain a quote but then search elsewhere online, too. You come back to the original quote only to find it is no longer available and instead receive a higher quote for the same cover.”
“Beware of discounts online as they don’t always add up as they say.”
“Comparison sites saved me nearly 50 per cent from renewal quote.”
“I had to phone the insurer to get them to process it and they tried to charge me a higher price than it was advertised online.”
“The price difference from comparison site to comparison site for the same product was the strangest anomaly.”