Survey found nearly £700 difference in car cover

What a difference a phone call can make

What a difference a phone call can make. When it comes to motor insurance, canny consumers can save hundreds of pounds if they shop around. Try this for size. When Mr Peter Coogan, a long-standing member of the Consumers' Association of Ireland, recently sought motor insurance, he obtained 17 quotations, from £481.69 to £1,158.98.

He plumped for the cheapest, from Eagle Star, and found it included some features not offered by several companies quoting higher premiums.

Peter is 63 and has driven for 46 years without an accident or conviction. He has driven more than 500,000 miles and never made a car insurance claim, according to the February edition of Consumer Choice, the magazine of the CAI. He is now retired and drives about 8,000 miles a year. In fact, he should be an insurer's dream.

He drives a two-litre automatic car, value £27,000. He looked for quotations for comprehensive insurance for himself as the main driver and for his wife, who uses the car occasionally. She has her own car and insurance and an unblemished 35-year driving record.

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Peter obtained quotes on the Internet and over the telephone. "The sensational finding from this survey is that in several cases the same insurer quoted a higher premium for a lower level of cover when operating through an Internet broker," says Consumer Choice.

For instance, Hibernian quoted four prices between £543.16 and £902.31 for varying levels of cover through www.123.ie and www.solmon.com

But Peter obtained a quote of £532.58 for Hibernian's "most elaborate cover" by phoning directly.

It cannot be assumed that brokers get the best deal for consumers, as this survey reveals that some insurers may charge higher prices when selling policies through brokers, according to the CAI.

Peter has shopped around for car insurance for the past four years. In his first survey, prices quoted ranged from £540 to £2,100. The company offering the best deal this year may not be the best next year, so the shopping exercise has to be done annually.

Mr Stephen Patterson of the Irish Brokers' Association told The Irish Times that some insurers engaged in dual pricing, offering one price to consumers and another to brokers.

"It is possible that sometimes consumers will get better quotes directly, but it does not happen all the time," he said. Often it worked the other way. "There is one insurer who deals with a network of 70 brokers and the best price and cover is sold through this network," he said.

Brokers offered consumers a choice of a minimum of five insurance companies. They offered advice based on price and service and were there to help when a claim occurred, Mr Patterson said.