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Why so cheap?

The reason couldn't be simpler. It's expensive to employ people. The more automated a system, the fewer the people needed to run it, and the insurance company can pass on the savings to you. So long as the company can give out online car insurance quotes and, if there are no questions to answer, issue the policies automatically, you get a reduced premium. This leaves the staff numbers where they can do the most good, i.e. in the claims departments where they pay out should you have an accident.