Specialist car insurers not always best

by Richard Kilner

Story link: Specialist car insurers not always best

Specialist motor insurance that focuses on good deals for certain demographics, such as women or the elderly, may be far more costly than many high street names, according to new research by moneysupermarket.com.

The premiums offered by specialist insurers frequently range from 30-100% more than other firms, clearly showing that a specialist insurer is not automatically the best financial option.

The website has analysed the relative merits of specialist insurers compared to high street names, and found that motorists may be missing a trick by opting for the former.

The director of insurance at moneysupermarket.com, Richard Mason, explained that as the elderly frequently find their motor insurance premiums cheaper than average, it gives a window whereby specialist insurers can claim to offer a better deal. However, the research conducted by the website strongly points to browsing the market thoroughly rather than being seduced by the specialist insurers straight away.

Mason refers to the insurers Sheilas’ Wheels, Ladybird and Diamond who have raised their profiles by appealing to women as a cost-effective option. He explains that though sometimes they may be the best deal for women, quite often their premiums will be beaten by the offerings of larger, more established insurers.

He went on to say that one of the draws of specialist insurers are the extras they offer, such as cut-price MOTs or free mobile phone and connection, but adds that slick advertising by itself shouldn’t convince consumers. A balance should be struck between extras, and the overall premium.