Why is my fiancee's insurance renewal £1,000 cheaper through a comparison site?
My fiancee has previously been paying approximately £500 a year to insure her car. In October she unfortunately suffered a collision that resulted in her insurance company, Elephant, writing off the car and (eventually) paying out an agreeable settlement figure. It's now time for renewal and the letter duly arrived from Elephant stating that her premium for next year will be £1,650.
She ran some quotes through the comparison websites, complete with all the claim details, and a quote for an Elephant policy is given at under £700. Nearly a £1,000 difference. Speaking to them on the 'phone they seemed totally unconcerned at this ridiculous situation and said they would match any of their quotes from comparison websites. They failed to see this as a problem. Except of course, that they have lost a customer. What do you think of this practice?
She ran some quotes through the comparison websites, complete with all the claim details, and a quote for an Elephant policy is given at under £700. Nearly a £1,000 difference. Speaking to them on the 'phone they seemed totally unconcerned at this ridiculous situation and said they would match any of their quotes from comparison websites. They failed to see this as a problem. Except of course, that they have lost a customer. What do you think of this practice?
Asked on 6 December 2010 by PM, Egam
Answered by
Honest John
Some direct insurers are actually brokerages run by investors who see them as cash cows to be used to squeeze as much in premiums as is possible. The problem is that car insurance is compulsory, but in the UK premium levels are unregulated, so it's a licence to print money. Even more so now that car insurance is to be made continuous so it cannot be avoided.
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