Should we look to Ryanair for budget car insurance? One Fool digs around for the answers.
What is budget car insurance? Is that when you get Lionel Hutz, the inept laywer from The Simpsons, representing you in your personal injury claim? If you lose an arm, do you get a mannequin arm to replace it? If your bonnet is smashed in, do you get sent a hammer to beat it out again? These are all things I thought of when I learned that Ryanair now sells car insurance.
Seriously though, if I was Ryanair and I was getting into car insurance, I'd be looking at stripping cover to the bone for real budget stuff to keep it in line with what we already know and love (and hate) about the company.
I thought that, perhaps, with Ryanair comprehensive policies you'd get a courtesy car for just seven days as standard. If you need it for longer, you'd pay for it as an additional extra (rather like food). There'd be no cover for personal possessions. (One occasion where carrying your things in hand baggage will potentially cost you less.) I'd extend cover in Europe to France only, because you want people to fly everywhere else, but I'd throw in discounted deals on flights, with an extension of cover to Ryanair hire cars thrown in.
With this in mind, I looked into what Ryanair really offers. At no stage of the online quote did I get to see the policy document, which is disappointing. However, I know that you can get comprehensive; third party, fire and theft; and third party only policies. Although these aren't identical with every insurer, the basics should be the same.
I also know that you can get cover to drive other cars, although this is dependent on your circumstances, which is also much like any insurer. Ryanair offers to extend full cover into Europe for 60 days, but it says it 'may' charge you more. I don't know what that means, but I think it's safer to assume this is a Ryanair 'additional extra'. There was no mention during the process of the availability of protected bonuses.
I went undercover to check out their prices. Donning elaborate outfits and make-up, I compared quotes using two different profiles. (OK I was comparing prices online, but I was just throwing myself into the part for your sakes. The fishnet stockings were essential. Honestly!):
Profile 1. I'm a 35-year-old female called Mrs Dfgdf Dfgfdg* (pronounced duf-gerduf dufgufdug), living in GU14 (Hampshire) and driving a VW Golf 1.9 SE TDI (5-door), with no claims or convictions.
Insurer | Premium | Damage |
|---|---|---|
Budget | £194.41 | £250 |
Dial Direct | £199.24 | £250 |
Auto Direct | £203.55 | £320 |
Yesinsurance.co.uk | £208.57 | £100 |
Ryanair | £223.97 | £250 |
Profile 2. I'm a 21-year-old male called Mr Qwert Yuiop, living in BN1 (Brighton & Hove) and driving a Toyota Yaris 1.0 VVT-I T2 (3-door), with no claims or convictions. I wear fishnet stockings.*
Insurer | Premium |
|---|---|
Screentrade | £258.12 |
Endsleigh XML | £272.16 |
Insureandgo | £290.05 |
Ryanair | £393.35 |
Kwik-Fit Insurance | £401.06 |
*This probably didn't affect the quote!
Ryanair failed to compete in both profiles, but this doesn't mean it'll always be expensive. Every insurer has its favourite niche, whether it's old cars, mature drivers, low mileage, modifications or something else. The downside to getting an online quote from Ryanair is that it uses just one insurer, Equity Red Star, but, if you call them on the phone, they have a limited panel of insurers.
The two important points from this are:
- Ryanair uses ordinary insurance companies (or just one if you get an online quote), just like any broker.
- You'll be able to compare prices from more insurers with greater ease through a comparison site, such as The Motley Fool!
Compare insurance quotes now, and watch out for our upgraded insurance centre coming soon.