The purchase of goods and services online has almost become part of everyday life. We now shop for books, electronics, cars, homes and even partners online.

The most appealing aspects of online shopping are the fact that you can do it from your armchair and you can compare prices to get the best deal.

The financial services industry had a rocky start to their online initiatives with many not making it out of the starting block. However, as time marches on more and more individuals are becoming open to buying basic financial services online.

Lending itself to online

Short-term household and vehicle insurance is a product that easily lends itself to this medium. The ability to get online quotes and to compare apples with apples is a useful service in our busy lives. Seeing that, in general, short term insurance is a grudge purchase buyers are very price conscious.

So let's say you have just bought a new car and you decide to go the online route to see if you can get a better deal than what your current insurer is offering, and you decide to get a quote for household insurance as well. Your car is a 2007 Jeep Cherokee and the value of your home is R2-million with its contents worth R200 000.

The websites are generally easy to navigate but the first thing you will encounter is a statement that says: "The quotes presented are based on limited information provided by you on the electronic e-quote form. The quotes are therefore only illustrative and not a binding offer. The quotes are subject to change, based upon the verification and further consideration of more comprehensive risk related information that you will be required to disclose when you agree to the insurer or broker contacting you."

Why don't they ask everything they need?

So that is one strike against them. While it is understandable that they may need more detail why don?t they ask for it?

You will be asked for the make, model and age of your vehicle as well as the value of your home and contents and where you live plus a few other details. Key them in and up pops a number of quotes ranging from R1000 to R1400.

Not bad. You think your current insurer quoted you R1350 so you can definitely get a better deal.

They will negotiate

So you go back to your current insurer and inform them you would like to switch and then the most amazing thing happens. They start to negotiate. They will ask you to send them a copy of the quote and they will beat it, not by much but they will give you a better deal.

So you may decide to stick with your current insurer, but this is only the beginning of an irritating sequence of events.

Tips to save you money on page two and three...