Wednesday, 5 February 2014

Do Insurance comparison sites really save us money?

Whether we agree with it or not, we all need insurance. Unfortunately car insurance and home insurances are both essential parts of everyday life. Many people are using insurance comparison sites in order to find the best insurance deal. But we wondered if they really work? And now that there are a number of comparison sites offering a similar service, does it matter which site we use?

The answer is, comparison sites will show you a range of insurance policies and it will be easy to see the cheapest option, or the option which gives you the best deal for your needs. However, none of the sites quote every single insurance company, and all the comparison sites are doing business with these companies.

Here is how it works:

A comparison site will negotiate with certain insurance providers, offering to include them on a website for a percentage of successful sales. The insurance companies have the chance to be marketed by another company, and it is worth their while to offer insurance at a better rate in order to be more appealing in a search so they agree. And yes, basically, it means if you choose the cheapest insurance deal from a comparison site, you are getting a bargain compared to the other policies listed on that site. But it may not be the cheapest on the market.

What many people do not always realise is that search results, and insurance quotes change from person to person, car to car, site to site, and from day to day! In fact, rather like tickets for airline flights, no one really knows how much insurance is, and that is the point, and how insurance companies get way with charging high premiums for insurance.

In order to really save money on insurance, and get a true comparison, you will need to do some of the work yourself. Sometimes simply calling your own company and negotiating can reap rewards. Many people are now comparing the comparison sites! It all may sound like a lot of hard work, but if you can save yourself hundreds of pounds on an annual basis, spending that extra time could just be worth it.


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