Young drivers have been urged to spend more time shopping around for the best motor insurance policy, after GlobalData found that their preferred channel doesn’t always yield the best deal.
Purchasing through price comparison websites is the second most common motor insurance channel, according to the market intelligence firm, accounting for 31.3% of all purchases, but behind directly from a provider at 39.3%.
Price comparison websites are much more popular among young drivers, keen to get the best deal possible in a market where they face much higher car insurance premiums due to their inexperience and riskier behaviour.
Yasha Kuruvilla, insurance analyst at GlobalData, explained: “Looking at purchasing channel preferences among age groups, the price comparison website is the most popular channel among younger drivers.”
“As highlighted by the above chart, price comparison websites are more popular among drivers under 45 years of age, while older drivers prefer to purchase directly from a provider. The chart also highlights that younger drivers face much higher premiums compared to older drivers, which is likely to be the main factor driving them towards price comparison websites.”
GlobalData research has revealed that the prices on various price comparison websites are extremely varied. For example, a policy from a leading motor insurer in the UK was quoted as £248.64 per year. Using an identical profile on a different price comparison website, the policy quoted from the same provider stood at £614.88.
Kuruvilla added: “This highlights that consumers may not necessarily receive the best price when shopping on price comparison websites. Drivers should therefore invest additional time when shopping for motor insurance to ensure they receive the best deal. This is especially important for young drivers, as any penny saved on their high premiums will be appreciated.”
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