There's obviously a lot of margin in car insurance. You only need to look at how much AA Insurance and Tower have spent on their recent TV ads, or if that doesn't convince you go over to clixGalore and have a look at the affiliate scheme offers by major insurance companies, you can see the offers without having an account or logging in. One (I won't name them) are currently on the front page and offering 12% commission.
If you're someone with websites running affiliate ads this is a good offer, if you're someone looking to buy car insurance it isn't that great. So why the high margins? I think it's because it's fairly hard to get competitive quotes. Sure you can phone around, but you'll need to give the same information over and over again.
Somebody pointed this US site CI Auto Quotes out to me ... give them your details and they give you quotes from major car insurers. You can check the quotes and pick the best one for your pocket. This pretty much makes insurance a fungible commodity like fuel ... your buying the cheapest one causes the oil companies to cut their margins until they are selling petrol for only 4 or 5 cents a litre more than cost (Yes, it's true, they make it up in volume). Sites like this car insurance quotes site are going to empower the consumer and start pressuring the insurance companies to cut their margins.
I can't wait for someone to start a service like this here.