DRIVERS could risk paying hundreds of pounds more than they need to for car insurance due to “quirks” in how insurers and comparison websites collect data, according to Which?.
The consumer group found that differences between questions asked by car insurance comparison websites and individual insurers can substantially inflate premiums as assumptions may be made about a driver’s circumstances.
Which? said that in one scenario, a motorist was quoted more than £200 extra because an insurer wrongly assumed they had claimed for damage to their vehicle.
When using a comparison website to purchase car insurance, drivers can be asked a single set of questions agreed by insurers rather than answering each insurer’s unique set of application questions.
This can lead to insurers gathering slightly different information about drivers than they would obtain using their own questions.
It can potentially lead to different prices being quoted for the same person, Which? said.
READ MORE: Nearly half of Scots overpay on mortgage, Aberdein Considine reveal
Jenny Ross, editor of Which? Money, said: “It’s concerning to find that drivers may be left out of pocket as a result of factors beyond their control.
“To beat these pricing quirks, be sure to compare different routes for buying your insurance, look at various levels of cover from different providers, and shop around every year to make sure you’re getting the best price.”
Which? found that while it is compulsory to declare all recent driving incidents, not all comparison sites let customers specify which led to insurance claims.
It found Confused.com and MoneySuperMarket did not let drivers specify whether they had claimed on a reported incident.
Which? tested a scenario using both websites, where a south London-based driver had damaged his car but not claimed for repairs.
When checking the assumptions made by the insurers offering the 10 cheapest quotes using these two comparison websites, two insurers – Hastings Direct and Churchill – wrongly assumed the driver had made a claim.
When corrected, Hastings Direct lowered its quoted price by £10, while Churchill lowered the premium by £207.
Which? also found “seemingly irrelevant” customer information collected by insurers – such as home ownership, marriage status, or job title – can have an influence on premiums.
A MoneySuperMarket spokeswoman said the website does not control how insurers interpret its data, or any assumptions they make.
She said: “We optimise our customer journeys based on the feedback we receive from both customers and insurers.”
Confused.com added: “We work closely with insurers to make sure the questions we ask gives them the information to give an accurate picture of the customer.”
Why are you making commenting on The National only available to subscribers?
We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
Unfortunately, though, these important debates are being spoiled by a vocal minority of trolls who aren’t really interested in the issues, try to derail the conversations, register under fake names, and post vile abuse.
So that’s why we’ve decided to make the ability to comment only available to our paying subscribers. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate – and risk a permanent ban from the account that they subscribe with.
The conversation will go back to what it should be about – people who care passionately about the issues, but disagree constructively on what we should do about them. Let’s get that debate started!
Callum Baird, Editor of The National
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here