Motor insurance coverage pricing is not any stranger to regulatory scrutiny, but one vital a part of the proposition continues to function largely out of sight: add-ons. Whereas headline premiums have been formed and reshaped by regulatory intervention, the therapy of add-ons has advanced extra quietly – regardless of their rising significance to buyer outcomes.
Authorized bills, breakdown, courtesy automobile, private accident and windscreen cowl play a essential position in how clients expertise worth – and in how insurers generate margin. Our newest evaluation of worth comparability web site (PCW) journeys and minimal add-on costs (October 2025 vs February 2025) reveals simply how vast the hole has develop into between what clients assume they’re shopping for and what they really obtain.
Michael Dingwall, who led the evaluation, explains:
“What stood out wasn’t simply the extent of variation in add-on pricing, however how inconsistent the expertise might be relying on the place and the way a buyer buys.”
That inconsistency is not only a buyer expertise drawback. Below Client Obligation – and more and more beneath the DMCC regime – it turns into a conduct and competitors difficulty.
Central to the journey, inconsistent in apply
Throughout all main PCWs, add-ons stay a distinguished a part of the motor quote journey. Prospects are routinely introduced with choices for authorized cowl, breakdown, private accident, courtesy automobile and windscreen. Nevertheless, how these options are displayed varies broadly.
Some websites clearly present what’s included from the outcomes web page. Others require clients to click on into coverage element to find whether or not key options are current. One main PCW doesn’t show add-on costs even when they’re accessible, making significant price comparability tough.
As Catherine Carey, Head of Advertising at Client Intelligence, notes:
“How add-ons are displayed usually issues as a lot as how they’re priced. Small variations in presentation can have a huge impact on what clients consider they’ve bought.”
Central to the journey, inconsistent in apply
Essentially the most placing discovering is the dimensions of worth variation throughout the market:
- Authorized add-ons vary from a couple of kilos to nearly £40
- Breakdown cowl spans £2 to greater than £80
- Windscreen cowl can differ from beneath £5 to over £70 for a similar model on the identical PCW
In lots of instances, there isn’t a apparent risk-based driver behind these variations.
Tim Stout, Head of Progress & Innovation at Client Intelligence, feedback:
“When the identical kind of add-on might be priced anyplace between a couple of kilos and several other dozen kilos, it raises legitimate questions on how truthful worth is being outlined and evidenced.”
If an insurer can profitably provide windscreen cowl for £5, how defensible is £70? These gaps counsel add-ons might generally be used for margin restoration in methods that aren’t all the time clear to clients.
Why this issues now
With most motor insurance coverage now bought via PCWs, these platforms play an more and more influential position in shaping buyer journeys. Their design decisions have an effect on how info is introduced, what clients evaluate and the way worth is known on the level of buy.
For insurers and brokers, add-ons ought to now be handled as a core a part of Client Obligation compliance – not a secondary consideration. Readability, consistency and ease are more and more aggressive benefits, not simply regulatory hygiene.
See the place you benchmark
Add-ons are not a peripheral pricing determination. They’re a visual check of truthful worth, transparency and buyer understanding.
Client Intelligence helps insurers see precisely the place their add-on pricing and buildings sit out there. Our benchmarking instruments present how your add-ons evaluate throughout all main PCWs, highlighting minimums, medians, outliers and up to date competitor motion.
In order for you a transparent, evidence-led view of how your add-ons stack up – and the place pricing, presentation or worth may very well be uncovered beneath Client Obligation – get in contact to see the place you actually benchmark.
See how your add-ons actually evaluate
Benchmark your add-on pricing and buildings throughout all main PCWs. Determine outliers, observe competitor motion and proof truthful worth with confidence.
