Haggling car insurance - Norwich Union

Astaroth

The internet is cheaper for acquisition of policies but somewhat surprisingly, our experience is that it is only about 3% cheaper than call centre based acquisition when you consider the LTV and all the marketing/ IT costs etc.

The main two reasons that the internet is cheaper is firstly the mix of quotes received online tend to be better than on the phones (ie less chavs etc) which makes for a more stable common pool and so enabling lower premiums. Secondly, it is still seen as an emerging channel and insurers are willing to artificially cut prices in an attempt to grab market share.

As the internet becomes more and more used the mix will ultimately get closer and closer to the mix seen on the telephones and so that cost saving for insurers will go and eventually the fact that almost all insurers are making a loss on writting motor insurance will hit home hard and the concept of market share grabbing will have to move aside for increased premiums

northernstar_3

My renewal came through for my car Insurance with N.U. direct and was £497 :eek: After shopping around on the internet, I found a slightly better (and much cheaper) policy with Barclays. I phoned N.U to see if they could price match, and the young guy I spoke to wasn't helpful, muttering something about the policy excess not being as good. I said I'd double check and would call him back. The Barclays policy was indeed better value for money so I called N.U back to cancel my policy and got someone else on the line this time who couldn't have been more helpful. He apologised for the advice I'd been given initially, and informed me that N.U actually underwrite the policies for Barclays. I now have my insurance renewed with N.U Direct for £378 with the better policy that I would have got had I taken the Barclays policy