Insurance comparison websites – have they become pointless?

[DaveCWK]

I don’t know if this has happened with anyone else or just me.
When I started using comparison websites (Around 2008), they were the easiest and quickest way to get fairly accurate indications of a potential insurance premium, and I purchased several policies directly via the search results.

I ran my details recently, and the cheapest quote offered across all the usual sites was over £1000. A direct call to one of the UK’s biggest insurers had me a quote of £450 within 10 minutes.

Within the last 2 years or so, quotes via comparison sites seem to have become increasingly unrealistic.

Has the industry come full circle, and the best deals to be had are now by contacting companies directly, making a list of quotes and bartering with them down the phone, just like it was in the old days?

[moebiusuk]

I haven't had vast discounts by calling direct but it does help sometimes. I'm pretty sure insurance companies pay to be on those comparison sites and then offset the costs onto people who use the sites.

[jagnet]

No, not always. This year my insurance quote was by far the cheapest through Google's own comparison service, some 25% less than the best I was getting elsewhere, which gave me a base to haggle my existing insurer down to close enough as to not warrant changing.

Direct calls were coming in with some ridiculous prices.

[Crusoe]

It also depends which ones you use, some are owned by the big insurance companies now which kind of defeats the purpose.

[Pixelpeep]

I think they are fantastic. For the last 4 years running my policy has doubled on renewal (with no claims?!), a quick visit to go............com shows me that another company, this time Tesco as it happens, its half the price of my renewal quote so i take it. 3 minutes of my life.

I currently pay £400 fully comp on an Astra VXR, OH as named driver, live in a dog rough part of Essex and i have 6 points - happy with that!

[Hub]

But you wouldn't get a cuddly toy if you go direct to the insurer!

[TooMany2cvs]

Hub said:

But you wouldn't get a cuddly toy if you go direct to the insurer!

Damn right! (When will Baby Oleg arrive...?)

[slinky]

moebiusuk said:

I haven't had vast discounts by calling direct but it does help sometimes. I'm pretty sure insurance companies pay to be on those comparison sites and then offset the costs onto people who use the sites.

Insurance brokers pay to quote (a small fee) and pay to convert (a larger fee) on the comparison sites.
This fee will be pulled out of their administration "pot" which is, ultimately, funded by their premium income.

[LuS1fer]

Last year, I slashed my car insurance, motorbike insurance, home insurance and travel insurance using the Meerkat site.