Isn't it great that you can buy pretty much anything on the internet? From groceries to holidays, even brides can be sourced online. Insurance can also be bought online and with the promise of multi-comparison websites and low rates it does seem to be appealing. But you will pay more for your motorcycle insurance online than if you picked up the phone to make a call.
This may go against what you think is right, but the fact is it simply isn't true: whilst the internet has its own very good uses, the lowest rates are only available on the telephone.
I will try to explain why it's the case that prices are cheaper over the telephone. Insurance brokers or underwriters have to establish the risk they're being asked to insure. Whether it's a home, car, motorcycle, or any number of things that need insurance, critical questions need to be answered.
Those who operate online will normally ask a fairly standard range of questions on their website quote engine. These quote engines are supplied by a relatively few companies - CDL, SSP and Open GI are amongst the most popular. On a motorcycle insurance quote you might be asked for information such as your home address, no claims bonus, type of motorbike, mileage etc. All standard stuff and that's where the problem lies - it is standard stuff.
By their nature, websites have to capture very specific details and then arrive at a price using a complex computer programme. This means that other details that could help to lower your quote might never be mentioned. Even worse, because you are dealing with a computer you can't negotiate at all. You get a set rate that is arrived at based on the information you supplied in answer to the set questions.
Price comparison websites have sprung up over the past couple of years and have steadily grown in popularity. Essentially these bring all the brokers and underwriters into the one place and ask them to battle it out for your business. It is a great idea and some say that these websites now sell more than half of all car and motorcycle insurance in the UK.
The same rules apply, however. The companies competing are all running from standard data, using the same quote engine providers and giving their best price as a result. It can be difficult establishing the excess due, whether legal cover is included etc. so be careful: the cheapest may not necessarily be the most appropriate for you.
Of course, you are still getting a screen rate even on a price comparison website, which is kind of like paying the asking price for a new car or motorcycle without haggling: you just wouldn't do it.
Where the internet and price comparison websites are beneficial is for 'homework' purposes. You should use a price comparison website to find benchmark prices, which will then give you a target price to beat when you phone and speak to a broker.
Armed with this target price, you should then select a couple of brokers to telephone. You may want to select a big brand name and also a smaller, local broker.
When you talk to the broker on the phone they'll ask you most of the same questions as you'll have been asked online but the crucial difference is that you can talk and expand on various points. Using the motorcycle insurance analogy, it's easy to explain: you want motorbike insurance [http://www.westhill-insurance.co.uk/motorcycle-insurance/motorcycle-insurance.aspx] but have zero no claims bonus. Usually that'll mean a high premium, which is what you are likely to get online or on a price comparison website.
However, speaking with a real person you can tell them that you don't have any bonus because you haven't owned a motorcycle in 2 years, but that previously you had a full bonus. A good broker will use that information to lower the cost or perhaps even use a delegated scheme (a scheme where they can alter the screen rate price to match customer needs based on additional information or profile) to suggest a lower price.
It may take a couple of phone calls before you find a broker willing to beat the cheapest online quote, but you will most likely find one.
A note of caution, however: your insurance quote may not always go down, particularly in current market conditions. The big insurers generally had a great deal of money tied up in investments and we all know they have headed south recently. That puts more of an emphasis on them to make the money from the underwriting business so prices could well increase. Regardless, the 'phone, not internet' model should still find you the cheapest price.