Price comparison websites have made shopping for car insurance considerably easier. Enter your details once and, within minutes, you can compare quotes from a range of insurers competing for your business.
For many motorists, they can be a useful starting point when looking for car insurance.
However, the cheapest quote at the top of a comparison table is not necessarily the best insurance policy for you.
Differences in excesses, optional extras, policy restrictions and levels of cover can mean that two apparently similar car insurance policies offer very different protection.
Before choosing your next policy purely on price, it is worth understanding what you are actually buying.
Are Car Insurance Comparison Sites Worth Using?
Comparison websites can be useful because they allow motorists to compare a large number of quotes relatively quickly.
They can help you understand the range of prices available and identify insurers you may not previously have considered.
However, a comparison website should generally be viewed as one part of your search rather than a guarantee that the cheapest or most suitable policy available will appear at the top of the results.
Not every insurer operates through every comparison website, and some providers sell policies directly.
If you want to compare the wider market, you could consider:
- Using More Than One Comparison Website
- Checking Insurers That Sell Directly
- Speaking to an Insurance Broker
- Comparing Your Existing Insurer’s Renewal Offer
- Looking Beyond the Headline Premium
The objective should be to find suitable cover at a competitive price, rather than simply finding the lowest number displayed on the screen.
Why the Cheapest Car Insurance Quote May Not Be the Best
When comparing policies, it can be tempting to sort the results by price and select the cheapest option.
But insurance policies are not identical products.
A cheaper premium could come with:
- A Higher Compulsory Excess
- A Higher Voluntary Excess
- Lower Levels of Cover
- Fewer Included Benefits
- Restrictions on Driving Other Cars
- Different Courtesy Car Arrangements
- Reduced Windscreen Cover
- Different Personal Belongings Limits
- Different Legal Expenses Cover
- Restrictions on European Driving
- Additional Administration Charges
A £20 or £30 saving on the annual premium can suddenly appear less attractive if you have to pay hundreds of pounds more following a claim.
Always compare what the policy provides as well as what it costs.
Check the Total Excess
The excess is the amount you may have to contribute towards a claim.
This is particularly important when using comparison websites because policies can have both a compulsory and voluntary excess.
For example, an insurer might impose a £250 compulsory excess while you have selected an additional £300 voluntary excess.
That could leave you responsible for the first £550 of an eligible claim.
Increasing your voluntary excess can sometimes reduce your premium, but do not choose an amount that would cause financial difficulty if you actually had to make a claim.
When comparing two insurance quotes, look at the total potential excess, not simply the annual premium.
Make Sure Your Details Are Accurate
The price of car insurance is based partly on the information you provide.
Insurers use numerous factors to assess risk, so seemingly small differences in your circumstances can affect both the premium and the terms they are prepared to offer.
Information you may be asked to provide includes:
- Your Age
- Occupation
- Address
- Driving History
- Previous Claims and Incidents
- Motoring Convictions
- Annual Mileage
- Where the Vehicle Is Kept Overnight
- How You Use the Vehicle
- Vehicle Modifications
- Named Drivers
- No Claims Discount
- Type of Driving Licence
Answer each question carefully.
Do not select whichever answer produces the cheapest quote if it does not accurately describe your circumstances.
Providing inaccurate information can cause problems later and could affect how an insurer deals with a claim.
Be Accurate About Your Annual Mileage
Estimating annual mileage is something many motorists do quickly when requesting a quote.
However, your mileage gives an insurer important information about how frequently the vehicle is being used.
Think about:
- Your Daily Commute
- Weekend Driving
- Regular Family Journeys
- Business Travel
- Holidays and Longer Trips
You can also check previous MOT records to get a better idea of how many miles you typically drive each year.
There is no benefit in deliberately providing an unrealistically low mileage simply to try to reduce the premium.
Give the insurer a reasonable and honest estimate based on how you expect to use the vehicle.
Tell the Insurer How You Use Your Car
One of the most important questions when arranging car insurance concerns how the vehicle will be used.
A car used exclusively for personal journeys presents different requirements from one regularly used for commuting or travelling between business locations.
Depending on your circumstances, your policy may need to cover uses such as:
- Social, Domestic and Pleasure
- Commuting to a Regular Place of Work
- Business Use
Do not assume that commuting or business journeys are automatically covered by every policy.
For example, if you start using a vehicle for work after arranging insurance for purely personal use, contact your insurer and check whether your policy needs to be changed.
Be Clear About Where the Car Is Kept Overnight
Insurers will normally ask where your vehicle is usually kept overnight.
Possible answers might include:
- A Garage
- Private Driveway
- Residential Car Park
- Public Car Park
- On the Road
Answer according to your normal circumstances.
Occasionally parking somewhere different does not automatically mean that you have done something wrong. The important issue is that the information you provide accurately reflects how and where the vehicle is normally kept.
If your circumstances change significantly – for example, you move home or start regularly keeping the vehicle somewhere different – contact your insurer.
Declare Previous Claims and Incidents Correctly
Your claims history is another important factor in calculating your car insurance premium.
Read comparison-site questions carefully because insurers may ask about more than successful claims.
Depending on how the question is worded, you may need to disclose accidents, losses or incidents within a specified period even if:
- You Did Not Make a Claim
- Another Driver Was Responsible
- The Claim Was Settled as Non-fault
- Your Insurer Recovered Its Costs
Do not make assumptions about what an insurer wants you to disclose.
If the wording is unclear, ask for clarification before purchasing the policy.
Declare Any Vehicle Modifications
Changes to a vehicle can affect its insurance risk.
Modifications are not limited to major engine upgrades or performance tuning.
Depending on the insurer, relevant modifications could potentially include alterations to:
- Wheels
- Suspension
- Bodywork
- Exhaust Systems
- Engine Performance
- Interior
- Lighting
- Security Equipment
If you are uncertain whether something counts as a modification, ask the insurer.
It is preferable to clarify the position when taking out the policy rather than discover that something should have been disclosed after an accident.
Check Which Optional Extras Are Included
One policy may appear more expensive simply because it includes benefits that another insurer charges for separately.
Common car insurance extras can include:
- Breakdown Cover
- Motor Legal Protection
- Guaranteed Courtesy Car
- Key Cover
- Personal Accident Cover
- Excess Protection
Decide which extras you genuinely need.
Adding every available option can significantly increase the price, but automatically removing everything to obtain the lowest quote may leave you without protection that you would have valued following an accident.
Check Courtesy Car Cover Carefully
Many comprehensive policies advertise a courtesy car, but the conditions can differ.
For example, a courtesy vehicle may only be provided while your car is being repaired by an insurer-approved repairer.
Different arrangements may apply if your vehicle is stolen or declared a total loss.
If having access to a replacement vehicle is particularly important because you rely on your car for work or family responsibilities, check exactly what the policy provides.
Do not rely solely on a tick or icon shown in a comparison table.
Look at Windscreen Cover
Windscreen insurance is another feature that can vary.
Check:
- Whether Windscreen Damage Is Included
- The Windscreen Excess
- Whether Approved Repairers Must Be Used
- Whether Claims Affect Your No Claims Discount
- Any Maximum Payment Limits
Modern windscreens can contain cameras, sensors and other technology, making replacement considerably more complicated than simply fitting a new piece of glass.
Understand Your No Claims Discount
Your no claims discount can have an important effect on your premium.
When moving between insurers, make sure you enter the correct number of qualifying years and can provide evidence if requested.
You may also be offered protected no claims discount as an optional extra.
Protection does not necessarily mean that your insurance premium cannot increase after an accident. Instead, it generally relates to protecting a particular level of no claims discount according to the insurer’s terms.
Read the conditions carefully.
Check Policy Limits and Exclusions
Comparison tables are designed to make large amounts of information easier to digest, but they cannot always show every detail of a policy.
Before purchasing, read the insurer’s policy information and check important limitations and exclusions.
Areas worth checking include:
- Driving Other Vehicles
- Foreign Travel
- Personal Belongings
- Replacement Keys
- Audio and Navigation Equipment
- Vehicle Recovery
- Approved Repairers
- Courtesy Vehicles
- Windscreen Claims
- Cancellation Charges
- Policy Amendment Fees
If something is particularly important to you, confirm it is covered rather than assuming that it will be.
Why Speaking to a Broker Can Help
Comparison websites largely rely on you selecting and entering the correct information yourself.
For straightforward insurance requirements, that may work perfectly well.
However, circumstances are not always straightforward.
You may benefit from speaking to an insurance broker if you:
- Own an Unusual or Specialist Vehicle
- Have a Complicated Claims History
- Have Multiple Drivers
- Require Business Use
- Have Modified Your Vehicle
- Have Unusual Occupation or Driving Requirements
- Are Unsure Which Cover You Need
- Want Help Understanding Policy Differences
A broker can ask additional questions about your circumstances and help identify policies that provide appropriate protection rather than focusing entirely on the cheapest headline price.
Comparison Website vs Insurance Broker
Neither option is automatically better for every driver.
A comparison website offers speed and convenience. A broker offers the opportunity to discuss your individual circumstances and receive assistance when comparing cover.
For a driver with straightforward requirements, a comparison website may provide everything they need.
For somebody whose circumstances are more complicated, speaking to a broker can help ensure that important information has not been overlooked.
The most important consideration is whether the policy is appropriate for you.
Can Incorrect Information Affect Your Car Insurance?
Yes. Information supplied when arranging insurance should be accurate and complete in response to the questions asked.
This is another reason not to rush through an online quote simply to see the final price.
Take the time to check:
- Your Personal Details
- Vehicle Details
- Driving History
- Claims Information
- Annual Mileage
- Vehicle Usage
- Overnight Parking
- Named Drivers
- Modifications
If you notice an error after purchasing the policy, contact the insurer as soon as possible and ask them to correct it.
Likewise, if something important changes during the policy period, tell your insurer where necessary.
Don’t Automatically Accept Your Renewal Quote
When your insurance renewal arrives, review it rather than allowing the policy to renew without checking your options.
Look at whether:
- Your Circumstances Have Changed
- Your Mileage Has Changed
- Named Drivers Are Still Required
- Your Vehicle Usage Has Changed
- You Still Need the Same Optional Extras
- The Cover Remains Suitable
- Alternative Policies Offer Better Value
Shopping around can help you understand whether your renewal remains competitive.
However, once again, compare equivalent levels of cover rather than simply choosing whichever insurer displays the lowest annual premium.
Price Is Important – But So Is Protection
Nobody wants to pay more than necessary for car insurance.
Comparison websites can be an extremely convenient way to explore your options, but insurance should not be treated as a product where price is the only difference.
The cheapest policy could represent excellent value if it provides everything you need.
Equally, spending slightly more could be worthwhile if another policy has a lower excess, stronger benefits or fewer restrictions that are important to you.
The key is knowing what you are buying.
Looking for Car Insurance?
Finding suitable car insurance means balancing price with the level of protection you actually require.
At West Craven Insurance, we can discuss your circumstances, explain your options and help you look for car insurance suited to the way you use your vehicle.
Rather than choosing a policy based solely on the cheapest headline premium, speak to our team about finding car insurance that provides the cover you need at a competitive price.
