Insurance Company Target Markets

[romeogolf]

Saw the below quote from this post.

Sheepshanks said:

cuprabob said:

Direct Line, Churchill and Privilege, who are all the same company are always much cheaper than anyone elsr for me.

I really don't get how it all varies so much - I've never had a decent price off the above group. I know insurance companies use complicated algorithms etc, but you'd think they'd come to broadly the same number.

LV= is by some way the cheapest for me (of companies you've heard of), and they don't mess about with the renewal prices. Yet I've suggested them to other people with apparently similar details and they've been miles out.

It seems that insurance companies each target a particular market. So while (in my experience) Elephant/Admiral have been cheapest for me as a young driver in a high-risk postcode, they prove to be more expensive for those in other groups.

Does anyone have any more detail about this, or could highlight roughly which companies target which markets? Or just post personal experience based on your own risk factors (age, location, vehicle etc)?

[SteveSteveson]

This has been known about for years. Some are clear about it, others have less clear targets. Some are static, like a company may go after young drivers, or avoid them, some move as the company spreads it's risk profile to balance low risk, low profit against high risk high reward. It's not easy to say X company will be cheap, because they may change what they are after tomorrow.

Price comparison websites mean you don't need to trawl through companies and hope you hit the one after your risk profile any more (Or use a broker, unless you are after something other than the cheapest insurance for a bog standard mass market car)

[Claudia Skies]

romeogolf said:

It seems that insurance companies each target a particular market.

As do the brokers. One a car I have recently insured one broker quoted £750 and another quoted £1,250, both with the SAME insurance company. Astounding.