











|

the
latest news from our featured car insurers....
Also available in RSS 
|
|
Homepage
Tired of
paying too much for your car insurance? Try Tesco's...

|
TESCO 
Free
MOT and Service
when you buy Tesco car insurance online – conditions apply. |
1 May 2010
(source: in-house)
Low Cost Car Insurance
To get low cost car insurance in the UK, it is most common for drivers
to use a car insurance comparison site to find it. This makes sense.
These one-form quote services are becoming an ever more powerful way to
get the cheapest quotes as they add more and more car insurers to their
panels.
Price comparison sites have revolutionised the way that the insurance
industry operates. In the past, if people wanted to compare motor
insurers to find a low cost car
insurance quote, the best that
they could do was to use a broker. The broker would check the prices of
the car insurers on its panel of perhaps 20 to 40 car insurance
companies and, in order to stay in business, would need to be
reasonably competitive.
However, the consumer could never be sure that he was getting genuinely
the best deal when finding low
cost car insurance in this way, as the broker, inevitably, balanced value to the consumer against
the size of his own commissions.
With price comparison sites came the need for ever more competitive
pricing as these systems may check 1000s of policy prices via one quote
form. This has forced brokers and insurance companies to do two things.
The first of these two things, of course, is to develop ever cheaper
policies to compete with rivals on price comparison sites. The second
thing - which is the flip side of the first - is to pair down the cover
and push up the excess of these very low
cost car insurance policies in order to square the pricing mathematics,
taking account of the insurance risk and potential loss adjustments in
the event of a claim.
Thus, the market has been flooded with 'no frills' variants of
hithertoo more inclusive and hence arguably more attractive policies in
order to meet their commercial needs (to stay in business) in this new market place, a market place that is now dominated
by low cost car insurance
providers.
It became increasingly clear to the large car insurance providers as
price comparison sites gained in popularity that unless they accepted
this market trend and offered their own 'no frills' policies, that they
could expect to see a reduction in their market share.
And, when you step back from this, you begin to ask the question
whether price comparison sites have enhanced the process of finding low cost car insurance or, in fact, they have
interfered with it in a way that leads to potential problems for the
consumer.
You can certainly say that when you buy low
cost car insurance through a
comparison site, that you need to check over the cover very carefully.
Something, if done properly, that may take you to the motor insurance
companies' websites to find what you need.
More News - More Reviews:
2 May
2010 young persons car insurance
3 May
2010 car insurance search
4 May
2010 high performance car insurance
5 May
2010 car insurers
6 May
2010 cheap car insurances
7 May
2010 car insure
11 May
2010 car insurance for teenagers
13 May
2010 car insurance for women
19 May
2010 car insurance rates
28 May
2010 car insurance price
|
home

Britain's favourite Cheap
Car
Insurance UK Site
|
| Supermarket
Car
Insurance: |
Car
Insurance
Comparison: |
Direct
Car Insurers: |
|
|
|
|
woman
car insurance page
car-insurance-uk-supermarket.co.uk
Copyright ©
2006. All Rights Reserved.
part
of the Headlinehouse.com car
insurance group
|
|