So driving lessons, car insurance, breakdown cover, in fact even servicing costs can be compared online.  Does this actually save any money in the long term? Well I’ve been thinking about this today and I am not sure of the long term benefit.

I personally think that the recent hikes in car insurance premiums may be more to do with the rise in comparison sites than all the other reasons that are being bandied about. Let me explain:

If there were 10 insurance companies (there are actually hundreds and hundreds!) and they all become competitive because they are so easily compared, then there are much fewer people paying more than they have to. Therefore there are fewer ‘suckers’ who simply give the insurance companies extra money which helps to fill their coffers. So then the insurance companies will have to get the money from somewhere else.

What company in their right mind would cite the above reason for increasing their prices? Would it not be more ‘acceptable’ to bring in another reason for their actions? Just thinking out loud really.