Car Insurance Comparison Sites: Drivers Could Be Throwing Money Away
Comparison sites offer the promise of locating the best car insurance options, for the best price. But many of them may charge motorists hidden fees…
Hidden Charges on Comparison Sites
A new study has revealed that the majority of new drivers are unaware of fees charged by car insurance comparison websites. An enormous 88% of new and young drivers were ignorant of the fact that the sites ramp up prices to factor in their own commission. 61% of the 750 drivers involved in the research felt the websites were the best place to find cheaper insurance. Just 11% said they had contacted insurance providers directly in the past, after using the sites. The research was conducted by Honch, an insurance provider. It claims that most comparison sites charge an extra £60 for policies sold via their services. Once the drivers involved in the research were informed of this, 97% said that it was unfair practice.
Gavin Sewell, CEO of Honcho, believes hidden costs are ‘plaguing’ the industry. He said, “drivers across the UK are being lulled into a false sense of security by price comparison websites, whose marketing tactics and friendly-faced company mascots can be very disarming”. He added, “however, these companies know exactly what they’re doing when it comes to squeezing a bit more money out of hard-pressed consumers and cover their tracks well”. In addition, he expressed relief that regulatory bodies were beginning to investigate the matter, believing they would “restore decorum to the industry.”
Is There More to the Story?
It’s true, comparison sites charge seemingly ‘hidden’ fees. This shouldn’t be surprising. They are, after all, businesses and want / need to make money like any other. Whether they should be charging as much as they are, or whether they should make such charges clearer, is a matter of debate; it’s almost certain the vast majority of consumers would agree that they should. Insurance providers generally don’t like them and with good reason. It’s a tough industry and many of them, when compared, won’t come out looking good. Many will simply look average or mediocre. This is something they’d rather hide from potential customers. So their concerns around comparison sites aren’t necessarily motivated by pure altruism. After all, the figures they’re charging themselves are rising all of the time!
The best way to get a car insurance quote that’s affordable, and meets your needs as a driver, is to shop around. The best way to do this is to contact a number of providers directly. This removes the need for comparison sites (and their fees) and means you can make an informed decision. Sure, it takes a bit of time. But earning money often takes a lot of time. So why waste it needlessly? If you do use a comparison site, simply use it as a guide; don’t take the policy out with them. It’ll nearly always be cheaper to purchase the policy via the provider directly. In addition, never feel the need to be loyal to a particular provider; many of them ramp up premiums quietly the longer you’re with them, regardless of whether you claim or not. Instead, shop around each time your policy is about to expire.
Ten Ways People Accidentally Invalidate Their Car Insurance – https://autoserve.co.uk/motoring-news/accidentally-invalidate-car-insurance/
All The Ways Your Wasting Money On Your Car – https://autoserveclub.co.uk/blog/wasting-money-on-car/
