Cost concerns raised over ‘quirks’ in car insurance

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.

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 if using their own questions.

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.

A MoneySuperMarket spokeswoman said the website does not control how insurers interpret its data, or any assumptions they make.

She said: “We don’t ask customers to supply the cost of a recent claim as this is often something they will not know in detail – for example, costs may have been paid direct by an insurance company to a garage for repairs to a vehicle.”

Confused.com said: “We work closely with insurers to make sure the questions we ask gives them the information to give an accurate picture of the customer.

“When it comes to incidents that have been disclosed, insurers will validate the information with the Claims and Underwriting Exchange.”