Auto Insurance at the Car Insurance Supermarket
There are those in
the UK that are very bargain-orientated. Just about everyone likes a
bargain, especially those living in and around Aberdeen.
For a relatively expensive purchase, such as auto insurance, this
bargain mentality is especially true. No suprise then that in the UK,
we can't get enough of price comparison sites that funnel us all
towards those cheapest of auto insurance quotes.
But are we walking blindly to the abyss? Do we really know what we are
buying or are we like those children duped by the pied piper?
Very often, in our view, the latter is an appropriate metaphor for
people's auto insurance buying behaviour. Every insurance
policy is treated as a 'black box' with a price tag, the price tag
being the only actively considered component.
But that is a big mistake. Here's why. Let us introduce Mr Big. Mr Big
runs Big Insurance and he has seen his turnover drop since people began
to use price comparison sites more and more to find auto
insurance.
Mr Big pushes his big piggy frame backwards on his ample leather swivel
chair and puffs cigar smoke into the air. No-one dares to tell Mr Big
that it is unlawful for him to smoke in his office. "Jones", he says.
"We need to remove everything that costs us money from our auto
insurance policy to compete with those blighters on price
comparison sites". He puffs smoke into Jones's face. "Bonus in it for
you."
And so is born the Big little policy, the ultimate no frills solution.
Enter Ralph Carefree who has entered his details into a car insurance
price
comparison site. "Oh look, Kylie" he tells his cat, "the Big little auto
insurance policy is fifty pounds less than any of the
others. I'll buy that."
Cut to Mr Big as he reviews his auto insurance sales
figures some months later: "It seems that there are more fools than I
thought. Well done, Jones!"
The point here is that it is naive for any consumer to ignore this
market shift and to believe that all auto insurance
policies are created equal. You need to know what you are getting and
should consider going direct to a leading insurer if you are looking
for a better level of auto insurance cover.
The above auto insurance scenerios although
illustrative, are fictional. Yes, really. It should be noted, however,
that at the
time of writing, they remain particularly fond of a bargain in
Aberdeen. We see no reason why this will change in the near future, or,
in fact, in the longer term.
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