Drivers paying hundreds more for car insurance if they’re renting or DIVORCED as comparison sites ‘assume they’re more likely to claim’
DRIVERS are being ripped off hundreds of pounds as comparison sites think they'll claim more from their insurance - if they don't own their home or are divorced.
These sites are collecting seemingly irrelevant information from their customers which, in turn, have an influence on premiums.
Which? found that quotes were around four per cent cheaper if the driver was a homeowner and also four per cent more expensive if they were divorced, as opposed to being married.
The problem is that these sites don't go into as much detail as an insurer would if you went direct, an investigation by consumer group Which? reveals.
They also fail to be transparent in explaining to the drivers the factors that have influenced their premiums.
While some car insurers, for example, offer discounts of as much as 15 per cent for dashcam owners, only one of the four major comparison sites gave drivers the chance to specify whether they owned one or not.
Which? also found that while it is compulsory to declare all recent driving incidents, Confused.com and MoneySuperMarket don't let you specify which, if any, led to insurance claims, resulting in some insurers then making incorrect assumptions.
When Which? tested this scenario, two of the insurers quoted - Churchill and Hastings Direct - wrongly guessed a claim had been made adding £207 and £10 respectively to policy prices.
And both confirmed to Which? that this could, indeed, lead to a variation in a driver's premium quote.
How to cut the cost of car insurance
IF you're looking to cut down your car insurance bill, follow our tips:
- Never accept a renewal quote
Your policy could double overnight if you're not careful. Make sure you put a reminder in your phone or diary of when it's up and shop around for a better deal. - Buy 21 days in advance
Purchasing a policy three weeks in advance can cut your bill in half. Buy 30 days in advance it could cost you hundreds more because there aren't as many policies out there. Taking out a policy at the last minute and insurers will deem you a higher risk and whack up your premium. - Use cashback sites
and and often have deals for cashback if you click through to the comparison sites via their own links and then go on to take out a policy, so look here first. There are also cashback offers if you go direct to the insurers but it's much more important to get the best premium so don't be tempted by these unless you already know the insurer in question is offering the cheapest quotes for you. - Check more than one comparison site
- For the best range of quotes, make sure you check , , and or as many of these as you can.
- Don't forget the ones comparison sites miss
Two of the biggest insurers, and aren't on comparison sites so you'll need to check them too to see if they can offer you a better deal. Again, click through to these from one of the cashback sites mentioned above. - Pay annually
Monthly installments mean you can spread the cost of insurance, but they come at a cost. Pay in one go to save more. We found you can save as much as £440 a year by paying car insurance bills annually. - Try tweaking your job title
Sometimes there is more than one way to accurately describe your job and trying different options can save you money. Never lie or use a misleading description, but found one example where a "chef" saved £88 a year by describing himself as "kitchen staff" instead which is still accurate. - Avoid the unnecessary extras
Typical car insurance can include legal assistance, courtesy car cover, personal accident cover, windscreen cover and protected no claims bonus. However, you are likely to pay up to £140 a year for these benefits, so decide what cover you really need rather than just accepting what an insurer adds on. - Look at telematics policies if you're a younger driver
These insurance policies use a small box fitted in your vehicle or a mobile phone app to monitor how safely you drive, by checking your speed and how sharply you brake among other things. For young motorists who pay the highest premiums, this can mean a saving of £370 on a standard policy of £3,200, for a typical 18 year-old driver, according to Gocompare.
Jenny Ross of Which? Money says drivers should feel confident and empowered using comparison websites, and not worried about whether they're getting the best deal.
“When it comes to buying car insurance, drivers should be more empowered than ever thanks to comparison sites, incentives, and introductory offers.
"So it’s concerning to find that drivers may be left out of pocket as a result of factors beyond their control," she said.
Hastings told Which? it does give customers the option to disclose further information once they go through to its site to review their policy, while Churchill said motorists can ring it to add extra information.
The Sun has also put this to both insurers.
Both Confused and MoneySupermarket say they constantly review their processes, while MoneySupermarket added that it's up to insurers how they determine prices from the information given.
But that's not the only thing that seems to be able to increase your insurance bill though as earlier this week The Sun reported on how having a poor credit score could have the same effect.
More On Car Insurance
Earlier this year, it was announced that car insurance costs could rise due to insurers having to pay out for serious claims.
It's not only paying out claims that causes price hikes though - extra charges can occur from providers charging larger admin fees for adjustments.
Drivers also need to be aware of car insurance providers hiking up prices with steal charges.
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