Car Insurance Price Comparison

19. 04. 2008 posted in: Price Comparison Companies

As the UK continues to go price comparison crazy particularly on car insurance we ask the question as to whether the model itself is damaging one of the very hands that feeds it, the insurance brokers.

Car insurance advertising has come along way in just a few years. Where directories once ruled we have seen a free fall in paper advertising as the consumer is swallowed up in the virtual world of the internet.

Car insurance once took pride of place in directories even at astronomic marketing costs but now even the directories have taken to desperate measures by placing their own ads in order to sell calls on, some even resorting to offering free advertising in return for a pay per call received deal. Pointless really when the fact is people are just not reading them anymore!

In the current climate the car insurance market place is definately enveloped in the price comparison sector but how is it working out for the brokers who fuel it. Word is many are now cutting their margins just to get seen on the insurance aggregators pages and the only winners are the price comparison companies themsleves who take a commisison on the sale of the car insurance acquisition.

Putting the whole market place in front of the consumer might seem really cool and pro-active to the price comparison companies and of course to the drivers desperate to save on motoring costs but the economic impact is devastating because the reality is cheapest sells in the insurance world, its a virtual entity that people have to have not something they boast about the quality of.

We posted this inevitable prediction two years ago! With the said the reality is quite simple, nothing is expected to stand still and this is the future of trading and it is very unlikely to go away.