In the bad old days businesses had the edge over consumers. The price you were quoted was the price you paid. Few people had the time or inclination to get more than a couple of quotes come insurance renewal time etc, and for most plain old loyalty (or is that inertia?) ruled the day.
The Internet changed all that. Now it was possible to get all the quotes you wanted from the comfort of your armchair, in minutes rather than hours or days.
Price comparison sites were an inevitable development in the evolution of Internet business. Essentially these sites are simply computer programs that collect your details once and submit them to multiple sites to find you the best deal - be it on insurance, consumer goods, utilities and just about everything else.
Price comparison sites are great and I unreservedly recommend them Here’s a couple of tips:
It’s always worth trying two or three such sites as not every site polls every supplier, but between them the top few will cover the vast majority.
Don’t just accept the cheapest deal you’re offered, be sure to read the small print to find out that it really does meet your demands, for example the cheapest insurance may have too high an excess or too many exclusions.
Rather bizarrely English insurance company Direct Line has chosen to exclude itself from price comparison sites and recently launched an advertising campaign deriding them as “middlemen”. In a manner of speaking that’s true, albeit automated rather than human ones. But who really cares about using a middleman so long as they get the best possible deal. My guess is Direct Line will eventually have to change its policy. Watch this space.
Inertia - The Enemy Of Your Pocket
The other day I received a renewal quote for my house insurance for £430-odd (GBP). I was somewhat taken aback to find that my very modest home was being insured up to the value of £1,000,000 (GBP)!
Once I got over my shock I discovered that this was the maximum figure and had been applied to ensure that I remained covered despite England’s current rampant house price inflation. Fast though the cost of housing is rising, I think something pretty dramatic would have to happen for the 500% increase needed for me to take advantage of the maximum figure.
Of course I am sure that the insurance company quoted this figure with my best interests at heart, but I can’t help thinking that it is the poor that are subsidizing the rich by paying premiums for cover far in excess of what they need.
Anyway, to cut a long story short, I decided to take advantage of the Internet to shop around. With a few clicks I found in a couple of minutes was able to obtain a quote of £228 (GBP) including some very useful home emergency cover.
How many of us simply renew existing insurances and other contracts just because it’s convenient and we can’t be bothered to shop around? There may have been an excuse in the olden days, but now with the Internet, and the many fine price comparison sites we can find the best deal from the comfort of our armchair with a few clicks of the mouse and keyboard.
Inertia costs the consumer a small fortune and lines the pockets of service providers. Be a wise buyer, it’s easier than you think and may lead to significant savings.
[NB I do not work for moneysupermarket.com and do not receive any commissions from them for business arising from this posting]
Once I got over my shock I discovered that this was the maximum figure and had been applied to ensure that I remained covered despite England’s current rampant house price inflation. Fast though the cost of housing is rising, I think something pretty dramatic would have to happen for the 500% increase needed for me to take advantage of the maximum figure.
Of course I am sure that the insurance company quoted this figure with my best interests at heart, but I can’t help thinking that it is the poor that are subsidizing the rich by paying premiums for cover far in excess of what they need.
Anyway, to cut a long story short, I decided to take advantage of the Internet to shop around. With a few clicks I found in a couple of minutes was able to obtain a quote of £228 (GBP) including some very useful home emergency cover.
How many of us simply renew existing insurances and other contracts just because it’s convenient and we can’t be bothered to shop around? There may have been an excuse in the olden days, but now with the Internet, and the many fine price comparison sites we can find the best deal from the comfort of our armchair with a few clicks of the mouse and keyboard.
Inertia costs the consumer a small fortune and lines the pockets of service providers. Be a wise buyer, it’s easier than you think and may lead to significant savings.
[NB I do not work for moneysupermarket.com and do not receive any commissions from them for business arising from this posting]
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