Comparison sites: we all know them, most of us use them;but do they tell you everything? In this article, we are going to take a look into what comparison sites are, how they work and why some insurance providers choose not to be on comparison sites, so that you are able to decide whether using them is best for you or not.
What are comparison sites?
Comparison sites are online platforms that allow users to compare prices, features, and other relevant information for products from different providers. These websites can help consumers purchase insurance by presenting a side-by-side comparison of the options available in the market.
How do comparison sites work?
Comparison sites, such as Compare the Market and Go Compare, can serve as tools to simplify your decision-making process when searching for insurance products. The process involves several key steps. Initially, these platforms collect information from various insurers that have signed up to the comparison site. This information includes details such as prices, features, and customer reviews.
The user then inputs specific criteria that allows the site to filter the options shown based on their requirements. This includes preferences, product specifications and budget constraints. The comparison site then processes the data and presents an organised list of products. This list includes the price being offered and limited information on the cover features.
The platform allows you to efficiently compare prices and select the deal that suits your needs.
Why some insurance providers are not on comparison sites
However, comparison sites aren’t always what they seem, and not every insurance product or company will be visible. Some insurance products will be on certain comparison sites, but not others, and some companies, such as Direct Line won’t be advertised on comparison sites at all. This is something that you need to be aware of before you use a single comparison site to find the best deal.
There are a number of different reasons why certain insurance companies or brokers will choose not to be listed on comparison websites. These can include cost, intricacies or complexities within the product, regulatory compliance and a focus on maintaining a stronger and more valuable relationship with the customer.
A focus on relationships with customers is also a common theme among insurance providers. Some believe that a more personalised approach is more effective in conveying the value of their services and in establishing long-term customer relationships, and so would choose to go down more traditional marketing routes to achieve this more bespoke, individualised process.
Why Comparison sites don’t have all the answers
Unless you’re an insurance expert, it can be very easy to misunderstand certain levels of cover and be left with a policy that isn’t completely fit for purpose.
The process of arranging insurance online via a comparison site is known as a non-advised or information only journey, this means that you are responsible for ensuring the cover meets your requirements, you understand the T&C’s and that you fit the full eligibility. Any mistakes could result in a claim being rejected or not paid in full.
The most common reason for claims being rejected is due to non-disclosure of key information or claims being made for situations that are not covered under a standard policy.
Comparison sites, in their nature, provide ‘at a glance’ information, it may not always be clear exactly what you are protected against unless you dig deeper into the full policy wording. Always make sure to check policy details in full before making a decision and look out for things such as alternative accommodation, trace and access and legal cover.
The total excess, should you need to make a claim, may also be larger than you think due to a compulsory excess in addition to your voluntary excess.
The hidden costs behind ‘money saving’
Now, we aren’t saying to avoid comparison sites at all costs (pardon the pun). However, comparison sites may be feeding you information that is a little bit too good to be true.
Cheapest isn’t always best. These ‘low cost’ results may end up being more expensive to you in the long run if your cover isnt adequate for your individual circumstances. Additional charges, such as adjustment fees, cancellation charges, processing fees or taxes, may not be immediately apparent.
As well as this, insurance premiums can vary based on factors such as coverage limits, excess, and the policyholder’s personal details. The displayed costs on comparison sites usually represent a baseline cost, so individual circumstances may cause the price to fluctuate.
Why speak to a broker?
An insurance broker provides expert advice for the products they specialise in. They will take the time to collect information, do research on your behalf across a range of insurers and deliver a recommendation tailored to your specific requirements and needs.
A broker should provide full support and guidance, explaining cover features and T&C’s in jargon free detail, answering all the questions you may have and provide a balanced view of the advantages and disadvantages of a product or service. A broker can also assist in saving you time in future by managing amendments on you directly with the insurer.
How Nest GI can help
As a dedicated broker, we are able to connect you with a diverse range of insurance policies from different 5-star Defaqto rated providers. Speaking to one of our friendly customer service advisors allows you to explore a range of insurance products, helping you to find a bespoke product that works for you. We can help you to make well-informed decisions, ensuring that you secure the best deal, tailored to your specific requirements. Contact us today to see how we can help you.
