Many consumers could be getting a far better deal on car warranties if they were prepared to shop around. Some analysts point out that savings of up to 50% could be made by buying online.
Those sort of figures beg the obvious question: why aren't more people buying warranties online?
Answering that question involves taking a closer look at the warranties market and the way that it has worked in the past.
Specialist car warranty firms have often looked to car retailers to sell on their policies to consumers. This arrangement has worked relatively well, with car retailers have a presence that many consumers are aware of.
With easy access to UK car owners, the main car dealerships have been able to offer cover, at a premium, to consumers. Warranty specialists, meanwhile, have been able to get their products sold, without a heavy outlay on advertising.
Some would point out that the only losers in this equation have been car owners. Often unable to purchase the products direct, UK consumers have effectively been left paying more than they need to.
Independent specialists are now looking to use the internet as a means of changing the status quo. They've realised that internet sales involve lower costs, meaning that price savings can be passed on to customers.
The internet also offers them the opportunity to have direct, immediate contact with people looking to purchase warranty agreements.
The impact of these changes on those of us looking to buy new policies is clear - shopping online will gave us access to lower car warranty prices.
If you want to find the best deal for you and your vehicle then make sure that you take the time to compare products and prices online.
You might be surprised by the amount that you could save.
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