What Exactly is Direct Car Insurance? And is it Cheaper?

Immediate car insurance is just what it describes, you make all the cover agreements yourself and buy the policy directly from the Insurer who underwrites the cover. car insurance

The features of buying ‘direct’ are that occasionally the premiums offered will be less than if you purchased through a middleman, though this is by far the circumstance for the majority in fact. 

Most direct motor insurance agencies are able to make cost savings in commission and data handling, which many do pass onto their customers in discounted premiums or advertising ‘tempters’ such as offering 12 months cover for the price of five, or throwing in some additional cover free, such as car breakdown insurance.

These marketing sweeteners should always be looked after sceptically by a possible purchaser of insurance, as it may well be the case that the expense of the ‘sweetener’ are absorbed elsewhere in the quote offered.

With so various sorts of motor unit insurance distribution points available these days it is sometimes challenging to determine whether you are purchasing your cover from an immediate company, or not.

You can purchase car insurance policy by either picking up the telephone and dialling a company that you found in the telephone book, browsing a high street wall plug, or by shopping on the Internet where you have access to various sorts of car, automobile and motor insurance full distribution products.

Whichever method you choose to purchase, it can still be challenging to determine from the onset, whether you are dealing with an immediate insurance carrier or one of the many other intermediaries that exist.

The types of insurance intermediaries that exist within the UK insurance market these times are numerous but can broadly be defined as belonging to one the subsequent groups:

Underwriters, Direct Firms, Insurance Companies, Scheme Services, Brokers, Comparison websites, Brokers, Introducers, Affiliates and Cast Groups.

Those at the top of the group are those most likely to be considered immediate suppliers of automobile insurance.

These at the bottom of record are those that are most likely to demand a commission, agents, or an introducer fee.

To understand and benefit from purchasing direct from an insurer we should look at the goods and services supplied by all these above groups and how they may be components of the price you pay as reduced.

As with all insurance, the potency of the pen, that is the ability to create a price for a risk, finally lies with the underwriters of the car insurance plan. These are the people who will suffer financially should you make a claim. Underwriters manage your risk and place the rates and charges. It obviously follows then, that the nearer to the source or bottom risk that you purchase your car insurance from, the more likely it is to be able to get the cover at the best possible price for the risk.