When is an on-line discount dearer?

RMMee

Apparently when you insure with Direct Line!

I have just bought a new car, which is not a replacement for my existing car, so I'm back to square one with sorting out insurance, rather than just altering my existing policy.

An online quote from Direct Line (with an alleged 10% discount) gave me a figure of £255.

I decided to do a telephone quote as well (mainly because I was confused over the status of No Claims), and, with exactly the same details was quoted £236.

Anyone know why?

(PS - its quite a good quote, and I will probably be taking them up on it - not knocking the company, just their admin!!!)

brazilianwax

There are usually additional fields and questions with a phone quote.

Your answer to those probably lowered your overall risk.

Either that or they've given you some kind of introductory discount above that offered online.

Or the sales assistant entered some details incorrectly. Are you sure the excesses etc were identical?

RMMee

I've checked the excess, and its actually £50 less on the telephone quote, which makes it an even better deal!

dunstonh

A lot of providers run an internet product and a telephone (or postal or intermediary product). Quite a few providers cut down their offerings depending on the distribution channels and bw above is correct in saying that often extra underwriting questions will exist on the different distribution channels which can impact on price.

I dont know what the process is with direct line but it is possible their online product has a 10% discount but maybe their telephone side need to boost their sales as its coming up to end of quarter and are giving a 20% discount.

You would be surprised how the discount thing is "manipulated" by providers with smaller discounts often giving lower pricing than high discounts because the gross premium they start with is different.

We would need someone from direct line to give the exact reason. You could ask them on the basis that you are wondering if the information is correct due to the difference in price.

RMMee

I will do that, thanks. But not till they are committed to the lower price!!!

raskazz

Could be a few different reasons for this, some have already been mentioned:

1) Differing ancillary products - Direct Line offer 'Guaranteed Hire Car' and Legal Protection as extras to the standard policy.

2) Different underwriting procedures vis a vis telephone/internet distribution.

3) Application of a discretionary discount by the telephone adviser to try to secure the sale on the spot.

4) Experienced sales staff know that there are rating differences between similar descriptions of your occupation, and input the lower-rating description.