| With the economy in an ever worsening state, the coming year brings more importance than ever to compare car insurance. On average only one in three motorists compare car insurance online, so there really has never been a better time to make the move to online comparison websites.
Those who never compare car insurance, seem to be destined to lose money because surveys tell us that those consumers who don't are almost guaranteed to be paying over the odds for their policy.
With comparison websites thick all over the web it can often very very difficult to select a provider, and with so many promising to save you money online it really is a tricky call to make.
In this article we will be impartial and will attempt to offer you some tips on what to look for from a car insurance comparison website when you compare car insurance online.
1. The more the merrier.
Of course when you compare car insurance, one of the most important things you need to look for is how many car insurers and schemes do they search? The more they search, they more likely you are to save money. With more quotes to select from you also have better options when choosing the right policy for you!
2. What is their mark up?
Car insurance comparison websites are not charities so there are two ways in which they can make money from you:
(i) They will put a mark up on the price of the policy just like a retail store does when you buy something. These are the ones to avoid as they are most likely also gaining an incentive from the insurer as well for your business.
(ii) They will add nothing to the cost of the policy but simply be satisfied with what the insurer offers them as the incentive to sell their product online for them. These comparison website usually use the term 'cheaper than direct' which means the comparison website will reduce the cost of the policy below that of the insurer themselves but still take a small portion of the policy cost for themselves from the difference between the price they pay the insurer and the price you obtain the policy for. These guys are the Robin Hood's of car insurance and therefore deserve your business much more.
3. Read the small print
Always read the small print and terms and conditions because if you don't you could get stung, either before or at the time you try to claim on your policy.
4. Interest rates
Many consumers always go for the cheaper quote, but just like with ebay's shipping costs there is always a bigger picture. The interest rate is what the insurer adds on to the cost of your policy should you choose to pay in monthly instalments.
Some insurers charge a modest 12 per cent while others will try to disguise their massive 28 per cent interest rate inside three thousand lines of conditions, and with the typical consumer too trusting to even notice this, they are never any wiser.
While there are many cowboys out there, most car insurance companies tend to play it fair and luckily most of the major car insurance comparison websites need to be competitive to be successful.
So if you want to save every penny in 2009 and beat the credit crunch, then we hope you found the tips and inside information in this article helpful or at least interesting. More importantly, don't forget to compare car insurance, it may end up being the lifeline you need to survive the harsh times ahead. |