It costs more for several reasons. It is a legal requirement to have insurance, therefore motorists are sitting ducks. There is no alternative.
Despite the impression of on-line multi-choice competition, most of those included in the listings are within a tight range of headline premiums and very often the end price quoted is significantly different to the headline Ã¢â‚¬â„¢call birdÃ¢â‚¬â„¢. And of course they vary greatly in extras and add-onÃ¢â‚¬â„¢s within that tight range.
With so many entrepreneurs (there are relatively few of what used to be known as Ã¢â‚¬â„¢Insurance CompaniesÃ¢â‚¬â„¢) seeking the opportunities on offer, syndicates are now rife. Populated by fund managers with no Ã¢â‚¬ËœstockÃ¢â‚¬Ëœ to worry about, the nature of the business is irrelevant. It could be Bolivian spud production or Peruvian knife sharpening, all that counts is software. ThatÃ¢â‚¬â„¢s why tele-sales staff can only answer questions that have an on screen answer. In those on-line listings there are bound to be what appears as the cheapest. How many go for what appears as the dearest? In reality they may be the cheapest but what counts are comparators. If all the alternatives are scary, the lowest price seems attractive.
At one time you could get Ã¢â‚¬ËœThird Party OnlyÃ¢â‚¬â„¢ (or the one-up Ã¢â‚¬Ëœfire and theftÃ¢â‚¬â„¢) as we all know. Nowadays there is no point, itÃ¢â‚¬â„¢s no cheaper than Comprehensive (and that exposes the marketing lie). Those classes of cover were choices to be made if your car, and this is no reflection on Ã¢â‚¬ËœourÃ¢â‚¬â„¢ cars but may just be relevant, had a low market value (affecting write-off values) or you were able to source parts to repair yourself. Like members of clubs!
There are also the unique opportunities presented by harsh economic times. The insurance business, being so close to the finance industry, knows only too well the value and importance of Ã¢â‚¬Ëœa good day to bury bad newsÃ¢â‚¬â„¢. When all have been softened up to expect things to be difficult and well used to daily reports that itÃ¢â‚¬Ëœs getting worse, then that is the time to hit with even more hikes - Ã¢â‚¬Ëœit was only to be expected after allÃ¢â‚¬â„¢.
So, not good news then. But there may be a glimmer of hope on the horizon. www.38degrees.org.uk
may be the way if enough people feel strongly enough to do something on a collective basis. ItÃ¢â‚¬â„¢s legal, non-subversive, free. WhatÃ¢â‚¬â„¢s to lose?