Why Do Some Banks Offer Car Insurance?

It is quite possible that if you have called into your local high street bank where you maintain your current account to conduct some form of business such as applying for a personal loan, a member of staff will offer to get you a quote for car insurance. The bank may offer its own motor insurance, be tied to one insurance company or offer a range of insurers one of whom you may decide to place your car insurance with.

So, why do some banks offer car insurance to their customers (and non customers as well)? The main reason is that they make money by selling car insurance. That is what bank’s are in business for – to make a profit. Insurance is a potential lucrative additional income stream and banks, quite rightly, will look at so many ways to make money. If they arrange cover for you through a panel of insurers then they will be paid a commission by the insurer for introducing the customer as long as the motorist takes out the cover.

Should you use your bank to obtain a quotation for car insurance? Of course, there is no problem in doing this. However, you may also wish to obtain quotes from other providers to compare them to ensure that you are more likely to end up with a competitive deal. Don’t rush in and make a quick decision – take your time to make sure that the cover you are taking out is suitable.

So, where can you obtain other competitive car insurance quotes from? Well, an option that is chosen by an increasing number of motorists these days is to use a price comparison website that has an extensive panel of insurance companies. It is so easy to obtain quotations online and you can do this 24/7 at any time of the day or night when it is convenient to you. You may even be able to apply for the cover online and set up and pay for the policy whether that is by way of a single annual premium or an initial deposit payment made by card followed by monthly direct debit payments.

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