Buying Car Insurance Online

The sale of car insurance online has grown dramatically over the last 4 to 5 years; 18 million Internet car insurance quotes were generated online in 2002, up 76% on 2001. This figure now accounts for around 5% of the UK motor car insurance market, which has a total annual value of around £9 billion.

Recent research has shown that while a quarter of people who changed their car insurance in 2002 did so online, by the end of 2004 this figure will approach 40%.

Why should I buy car insurance online?
Some of the other advantages of buying car insurance online include anonymity, no sales pressure, easy to access price comparisons, easy to purchase, and possible online discounts. Some car insurance companies used the advance in technology to develop more customer focused solutions. Additionally, companies will offer discounts to those willing to purchase online.

How do you buy car insurance online?
Traditionally, to search and purchase car insurance meant using a high street broker or a directory like the ‘Yellow Pages’. The Internet has moved the process into a new era but the same problem has remained. Only by trial and error is it possible to find a company actually interested in a customer’s business and is therefore willing to offer a truly competitive car insurance quote. Until recently the simple answer was that you would need to visit many resources online and get a number of quotes. However, new innovations mean quotes can now be aggregated.

What are the dangers of buying car insurance online?
Before you buy anything it is important to note a few items to be aware of. Many people will be influenced on initial price alone, and some companies will provide you with an indicative car insurance quote rather than a full one to lure you into purchasing one of their policies.

Tip: Always follow the quote through right to the end of their car insurance quote system. Don’t just look at the first price shown.

Tip: It is important you compare the additional items on your existing car policy to your prospective policy. Many buyers do not do this; they only focus on the price. It can prove costly (if you need to claim) as you may end up with less insurance cover than you originally started with. For example, your existing insurance policy may include automatic car hire in the event your car is garaged following an accident, however, the quote from the new insurance company may not include this.

Tip: Always check that your final quote includes optional excess, breakdown recovery, personal accident cover, personal belongings, audio equipment, and legal protection. If it does not, then run a full car insurance quote with the additional items to see what the full cost would be.

Online Security
You may be concerned about passing your credit card details over the Internet, but in reality the risk is very small. You take on just as great a risk by giving your credit card to a restaurant waiter or call centre operator who has just as much opportunity to use you card for illegal purposes. New credit cards tend to have a computer chip in them, significantly reducing a criminal’s chances of successfully being able to use your card.

Virtually every car insurance site that has a transaction function will display a secure padlock sign in the bottom right of your computer screen. This signifies you are in a ‘safe’ area. If you are providing your card details and you cannot see a padlock then do not continue with the transaction.

The financial services industry is also regulated, all members are required to conform to the code of practice as outlined by the Financial Services Authority from 14th January 2005.