Decoding the 5 Star Defaqto Rating: What It Means for Consumers

Here at Nest GI, we are extremely proud to recommend 5 Star Defaqto rated home & buy to let insurance products. Our aim is to provide the best possible products and service to our customers and partners, and to have that backed up by our great Google and TrustPilot reviews, is extra special!

But who are Defaqto, and why are their ratings important?

What is a Defaqto rating?

The Defaqto rating system is part of an independent service that compares financial products. Analysts study the financial market and award companies a star rating based on the features and benefits they offer as part of their products or services.

Defaqto analysts have assessed over 40,000 financial products and they are constantly analysing new products as they enter the market in order to help consumers make better decisions.

What do the stars mean?

Similar to other rating systems or review sites, Defaqto star ratings start at 1 star and go to 5 stars, with the latter being the best. Defaqto star ratings don’t take prices, service or the company into account, it is solely based on the features and benefits of the product itself. 

  • 1 Star: provides a low offering
  • 2 Stars: provides a below average quality offering
  • 3 Stars: provides an average quality offering
  • 4 Stars: provides a good quality offering
  • 5 Stars: provides one of the highest quality offerings in the market

The ratings are updated yearly, but the market is analysed daily for any updates or new products.

How is a Defaqto rating decided?

In order to be objective in their ratings, Defaqto doesn’t take customer service and price into account, as these factors are more likely to vary between consumers. Instead, they analyse products based on the level of cover and benefits that they offer. They study the small print that most of us skim over (or ignore entirely), and individually score features before adding them together and using the total to assign the product to a star rating.

Because of this, a one-star rating doesn’t always mean a product is bad, but that it is more of a basic policy with less features. Products that offer the most useful features are usually awarded a higher-rating, and in order for products to have a high rating, some core features must be included.

How can a Defaqto rating help me decide on an insurance product?

Did you know that 88% of people are more likely to choose a Defaqto rated product? Often, when comparing insurance products, the Defaqto rating for an insurance provider will be shown on the quote results page, so you can see which providers have the highest rating.  This will help you make a more informed decision when comparing insurance products.

While we recommend considering a Defaqto rating when comparing products, it is important that you think about every factor when deciding on what insurance product to purchase. If a product meets all of your criteria and fits your budget but has a lower star-rating, that shouldn’t be enough to put you off. It might be worth checking customer service ratings on review sites such as Google and Trustpilot as well, to ensure you have a well-rounded view of a product before purchasing.

How can Nest GI help?

At Nest GI, we have a range of different buildings and contents insurance products, depending on your requirements.

All of our quotes are provided through insurers that have been expertly assessed and awarded a 5 star rating by Defaqto.*

Contact us today to request a quote or get some advice from our trained advisers to find a policy tailored to you and your property.

*For standard business only, for certain non-standard and commercial business it may not be possible to place cover with a Defaqto rated insurer.

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