Just about every day we are asked if we can “do it a bit cheaper” or “beat the premium I got off the internet”. That always reminds me of a story:

A cargo ship was built at considerable expense. On its’ maiden voyage, the engine stopped and would not restart. The ship was towed back to harbour. The cost of lost business; servicing loans; berthing fees; crew wages and so on was staggering so expert after expert was called in to fix the problem but none could.

Then one of the crew suggested to the ship owner that he should call in Old Tom, who had a little workshop on the quayside and had been around boats all his life. Old Tom duly arrived with a little canvas tool bag, looked the engine room all over, pulled out a small hammer and gently tapped the engine. It immediately burst into life and kept going.

A few days later, the ship owner received an invoice from Old Tom for £10,000. He was shocked. Surely the old guy had done very little for that sort of money? He demanded an itemised account, which came in a few days later. It read:

  • For tapping engine with hammer: £2.00
  • For knowing where to tap: £9,998

So, when you buy insurance from Diamond Insurance Consultants, you are not just buying that one policy but also the many years of knowledge, experience and training that have been applied to the selection of that policy with that insurance company providing the required cover and an excellent level of service.

Yes, there is cheap insurance available, generally via the internet. 25% of all claims on all types of internet policies fail and that makes it very expensive insurance.

Other disadvantages of buying on the internet:

  • You become your own insurance broker. If you have a claim, you negotiate with the insurance company. If you have a complaint, you have to make it yourself;
  • What you see may not be what you think it is. For example, my own policy was due for renewal at £325. I thought I’d do some market research, inputting on a well-advertised comparison site that I wanted windscreen cover, courtesy car, and protected bonus. I was quoted £295, which was worth looking at. I clicked on the link to the insurer and there on-screen was a huge button, about 3/4 of the screen, saying BUY NOW!!!! But I checked the cover and found that the £295 was without protected bonus or courtesy car and windscreen cover limited to £50. Adding on those items took the premium to £405 so no longer a bargain;
  • A friend of mine took up a cheaper internet quote with the same insurance company that I had quoted with, then asked for help when he found that his new policy had NO windscreen cover. The one that I quoted – £25 more expensive – had full windscreen cover. Just because it’s the same insurance company doesn’t mean that it’s the same cover.