Insurance comparison websites have simplified the insurance buying process and most people now buy insurance through these websites. Once you know the coverage you need, enter a few details on any of these websites and you’ll have instant access to multiple insurers with the cheapest quotes displayed in seconds.
While the process of buying insurance, especially auto and home insurance, may seem simplistic, the same is not true for products.
The insured must enter into a contract with each policy purchase and, like any other contract, carefully evaluate its suitability for the purchaser.
The frequency of advertisements by the owners of these sites, both in print and electronic media, is from people whose claims may have been denied because they made a decision to purchase insurance based solely on price (premium). will drown out any complaints or tweets from To illustrate how problematic it can be to use price alone in choosing the right insurance policy, consider determining the price of a hamburger.
In a McDonald’s restaurant he can buy a hamburger for £0.99, but in the same store he also has a hamburger in a similar size bun for £5.99. The price difference between the two burgers is the toppings.
Cheap burgers may contain only beef, while more expensive offerings may contain higher quality beef, perhaps bacon, lettuce, onions, mayonnaise, mushrooms and pickles. I have.
A 99-pound hamburger (let’s call it a barebone burger) might appeal to some, but it’s not always what others want. The £5.99 hamburger (ROBUST Burger) may be more expensive, but it’s what others need to satisfy their appetites and may be willing to pay extra to meet their needs . .
Barebones vs Comprehensive Policy
Similar to the example above, insurance policies are sometimes called solid or robust/comprehensive. However, it is not always easy for insurance buyers to tell the difference between basic and comprehensive insurance.
Risks that insurance company “A” covers as standard may be sold as add-ons by company “B”.
Therefore, the premium offered by ‘A’ may appear higher than the premium offered by ‘B’. This is because the standard insurance offered by ‘B’ is minimum insurance. Second, choosing that policy because it’s cheap without knowing that it doesn’t include some of the risks you need can lead to disputes on your claim application.
Potential Conflicts of Interest
Some comparison websites are wholly or partially owned by insurance companies and may create conflicts of interest. As such, the stated premium results may be biased in favor of the parent or partner company.
The operators of these websites may also be influenced by offering high commission rates, causing their websites to promote certain brands.
Some insurance companies are not included
At the time of writing, some of the UK’s largest insurers, notably Aviva and Direct Line, are not listed on comparison sites, so you may get a better deal from a company that is not. Finally, keep in mind that these comparison portals act only as intermediaries, connecting interested parties with insurers. It presents only premiums generated using an algorithm provided by the insurance company and redirects the buyer to his website of the insurance company with the offer of choice.