Top tips for online car insurance comparison

Most drivers are comfortable with researching and buying their car insurance online from comparison sites without any help from brokers or sales staff, according to new research.

Around 86% of motorists are happy to shop online in the hunt for cheap car insurance, says insurance monitor Defaqto.

But the firm warns some could miss out policy benefits and features if they are comparing deals on price alone.

The study warns motorists buying new cars to look closely at replacement cover if a car is written-off or stolen.

Defaqto claims that although 95 per cent of insurers would replace a new car like-for-like, some firms offer less protection.

The important points to consider, says Defaqto, are:

  • Some policies only have like-for-like cover for the first 12 or 24 months of vehicle ownership
  • The damage cost for a new car to be replaced differs across the market, with the cost of repair required for full replacement ranging from 50-70 per cent of the car’s list price

Mike Powell, Defaqto’s general insurance analyst, said: “Anyone lucky enough to be buying a new car should consider what cover their or a prospective insurance policy would provide if their car were to be stolen or written off. 

“Although most comprehensive car insurance policies will fully replace a new car in these circumstances, the level of cover provided and criteria applied vary between policies.  In addition, a small number of policies do not offer any cover for new car replacement at all and a significant minority will not insure new imported vehicles.”

Powell also gives motorists an insight in what to look for on car insurance comparison sites.

“To ensure they get the right type and level of cover for their new car, people need to focus on pinpointing the features they need from an insurance policy and identifying the policies that provide that cover,” he said.

“Although important, price should not be the primary basis for comparison – after all, buying the cheapest cover available could end up being the most expensive option if it doesn’t provide adequate cover for someone’s new car.  An additional factor is the volume of people that are now buying car insurance online. 

“Although the internet gives people access to numerous quotes and quickly, it places more onus on individuals to take a feature-led approach to decision making rather than being led by price.”

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One Response to Top tips for online car insurance comparison

  1. Dave Holden says:

    “Powell also gives motorists an insight in what to look for on car insurance comparison sites…”

    I would have thought those points would have been no brainers! If one policy is several hundred pounds cheaper than another do people really not ask themselves why? Guess not.

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