New car
insurance - what's the answer?
Well the answer, we would suggest, is to
steer clear of price comparison sites. Here's why...
You've just bought a brand new car. Maybe it's really special to you,
your little pride and joy. Maybe you're paying it off in installments.
Whatever the case, you paid a lot of money for it. So why would you
want to cut too many corners in insuring a thing of such value to you?
And yet, many will go to a one-form-checks-all service to find the
cheapest quote out there and buy it without actually stopping to
consider what they have done. Well, let's look at that...
They've selected a policy that's cheaper than hundreds, even thousands,
of others. They've maybe saved a fortune on the premium. But at what
cost?
Let's consider it from the point of view of the insurance company.
Insurance companies, these days, are worried. They're worried about the
popularity of price comparison sites, where the cheapest car insurance
sells the best. So what do they do? They take the view that if that's
where the money is, they will need to carve out their own slice of that
(budget car insurance) market. So, they look at their current policy
features and they start slashing, then they do a bit more slashing
until their sums tell them that they can now offer their own 'no
frills' car insurance to compete alongside other similarly-slashed
policies on price comparison sites.
And how do these companies save money? They pass the costs back to you.
There is no other way to balance the books. The cheaper you go, the
greater this effect and therefore the more that you can expect to pay
yourself in an accident. So, when you buy the cheapest of thousands,
it's more sensible to say that you're a victim of the power and success
of price comparison systems than that you're their beneficiary.
Hence our opening remark - to steer clear. And, by steering clear, that
means you need to go direct to a leading car insurance company. And,
that's a smart move. As we'll now explain.
Price comparison sites generate a wide range of prices because they
compare a wide range of policies. Compare like policies and the spread
of prices is minimal in the highly competitive car insurance market. By
definition, the biggest brands have to be competitive in this market,
and they are. The effect is that prices, for all practical purposes,
look after themselves and you are therefore much better to select cover
on the basis of what you want. Look at the standard cover from most of
the large brands - as you can do whan you compare
car
insurance here,
and you quickly see why going direct has so much going for it. You get
the kind of cover you need in an accident, not some paired-down shadow
of a policy that only exists for commercial reasons.
So, when it's time to insure your new car, you know where to go. More..
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