There are an awful lot of car insurance providers in the UK all looking for new business and no doubt keen to retain their existing customers. However, why is such competition a good thing?
Well, car insurance is obviously a profitable line of business and these insurance companies will want to arrange/retain as much of this business as possible. These companies will be competing against one another and will no doubt do so in a variety of ways.
The most obvious way that one insurer competes against another is on price. So, you may find that company A offers the same level of cover as company B but the premium charged by Company A is lower than that of the other company. From the customer’s perspective this is a positive factor as it may give the client the opportunity to save some money.
Another way that one insurance company may compete with other companies is within the products that they provide to their customers. For instance, many insurance companies offer additional extras such as legal protection, car breakdown cover and loss of car key cover. Some companies may not offer the same optional extras as that of another company.
You may also find that some car insurance companies compete in respect of the amount of excess that they charge on a policy. For instance, one company may have a minimum compulsory excess of say £100 yet another may have a minimum compulsory excess of £250. There may also be differing levels of voluntary excesses payable between various insurance providers.
Competition between car insurance companies enables customers to have more chance of getting the level of cover that they require for a competitive premium. In order to obtain a good deal it is worth considering shopping around and one of the simplest and quickest ways of doing this could be to use the Internet and use the services of one or more price comparison websites.