If our service is really FREE, how do we pay our rent?
Essentially, we’re like the supermarket that sells your favourite brand of ice-cream. You can’t go to the manufacturer to expect to get a lower price (unless you’re buying in bulk, which case we can give you a more attractive discount, see how do I successfully get a further discount on my car insurance) and the supermarket charges you the same per unit cost as buying from anywhere else. The supermarket makes its money from buying in bulk from the manufacturer and adding a small mark-up (or a large one, as the case may be for ice-cream).
This is why our service is really free as far as you are concerned. We don’t add a mark-up to the direct insurance premium from the insurance company – otherwise we wouldn’t be in business. We simply give them the business that fits into their target market and they give us a fee for that.
Also, since some administration cost is involved in transacting your policy if you’re buying from them directly, it’s usually more expensive! Our economies of scale (and the fact that we work with several insurance companies) allow us to allocate administrative resources more efficiently hence you are more likely to get a better deal from us than from going directly to an insurance company or to a bank or to a car dealership.