Insurance Comparison sites are not always good value, says Which?

Insurance comparison sites clamouring to save customers money are failing to deliver the best policies, claims consumer champion Which.

The Insurance Blogger has long argued that the first factor someone looking for insurance should disregard is price.

The best way to compare car insurance – or home or travel insurance – is to look at the cover offered by the policies.

Comparison sites and their insurance providers want to make consumers choose on price rather than quality or standards of service.

To turn the tables, insurance buyers need a short checklist of what they want from their cover.

A motorist looking for cheap car insurance should look at the finer details, like the cost of paying an excess, replacement values and what happens if the vehicle is off-the-road for crash repairs.

Once the policy details are right or as near as they match the driver’s spec, look at the quoted price.

The rule is cheap car insurance is unlikely to offer the cover a driver needs – it’s better to buy the best value insurance that includes all the factors the driver wants in a policy.

Which has also revealed that customer satisfaction is low with online insurance comparison sites, with the best rated sites only achieving the same rankings as the worst rated direct insurer sites.

For instance, was the best rated financial comparison site at 44%, while Allianz was the worst rated direct car insurer out of 45 with the same score.

Santander fared even worse as a home insurer, coming in at 48th place with a score of just 41%.

Eight comparison sites of 11 rated returned a satisfaction score of 40% or less.

Which found one of the main problems of comparison sites was they quoted on a ‘one size fits all’ policy rather than tailoring cover to match a customer’s personal circumstances, which makes quotes more expensive and can lead to some customers taking out unsuitable policies.

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3 Responses to Insurance Comparison sites are not always good value, says Which?

  1. You need to get the right policy or else your insurance is compromised. Many of the comparison sites will volunteer excess for you or may not even ask your voluntary excess at all and simply deliver a price with an assumed (normally high excess). This is just one example of how comparison sites can let the customer down. But not all sites are the same – the big ones are money making machines, try the smaller more ethical ones for better service, better policies and sharp prices, like The Property Insurer, the UK’s specialist home insurance provider.

  2. David Walton says:

    Its all too easy to save money on a comparison site by deleting elements of cover without realising their importance. By using a broker, all the options available should be explained, making the whole process much easier and safer. The comparison sites have opened insurers and brokers eyes and made the whole process of buying insurance evolve but things do have to be done to make sure the standard is raised on a comparison site so the public know exactly what they are buying.

  3. It’s all about having trust in your insurance provider. There are unscrupulous comparison sites – and there are unscrupulous brokers. A mixture of the two is probably the best option. Get a price from one and then check it against the price from the other – just make sure you are asking for exactly the same cover.

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