July 14, 2013
Buying Insurance Using Comparison Sites
There are huge savings to be made when using price comparison sites especially when it comes to buying insurance so long as you bear in mind these top tips.
You should always check more than one comparison site as not all insurers are tied to a single comparison site. Moreover some of the larger insurance companies pride themselves on being independent and not using price comparison sites, i.e. Direct Line. It is also essential to remember that these sites are merely a platform on which other companies promote their products. They do not sell products themselves and instead their revenue comes from on-site advertising, sponsorship deals and click through commissions.
For example, every time a customer clicks through to the insurer’s website, the comparison site earns part of that commission. The first deal listed on the results page isn’t necessarily the best one for you, so don’t base your search on price alone or you could end up overlooking products which are ideal. Moreover these sites do not provide regulated advice. In other words, their top results are based on price alone rather than key policy features. If you are searching for more complex insurance i.e. you live in a house share and are seeking contents insurance, comparison websites may not be the best option for you as these types of policies are risky and are therefore not standardised. If you fall under this category it is advisable that you consult independent financial advice for a tailored policy.
If you wish to go ahead and use a comparison sites to find the best insurance deal for you then you need to first of all work out what level of cover and policy you require. Secondly you must check that answers on the search page have not been “pre-filled”. Comparison sites tend to do this in order to produce a more standardised results page, but it doesn’t necessarily reflect your insurance requirements. As has been stated previously, it is crucial to use multiple price comparison sites and to seek out big name brands that are not featured on them.
If you are planning to carry out a thorough search of available insurance policies then it may be worthwhile redirecting their quotes to an alternative email address in order to avoid cluttering up you current email’s inbox. Last but not least, once you have been transferred from the selected price comparison site to the specific insurer, re-read all the information to ensure that nothing has changed during the re-direction process. Always check the documentation and the small print to avoid being caught out. Price comparison sites are well worth using so long as you do your research and re-read everything before committing to a deal.