Ever Bought Something Online That Doesn’t Quite Fit?
Sticking with the same provider year-on-year for financial products such as insurance or savings accounts may mean you’re not getting the best deal. But using price comparison sites when renewing your policy isn’t always the best way to find a better one.
Added extras
An investigation by the consumer body Which? found that policies at the top of price comparison website results often include features you don’t want or need, such as a large excess or add-ons you didn’t ask for.
The research also found that many price comparison sites:
- don’t ask up-front about excesses on home insurance policies
- don’t show the compulsory excess on home insurance policies
- don’t give a breakdown of compulsory and voluntary excess
- don’t display annual and monthly prices side by side
- list policies that don’t offer the cover you require
- give the illusion of choice by showing quotes from the same company but offered by a range of brokers
Payment terms
It’s also important to check the payment terms and any associated costs. For instance, paying monthly rather than annually for your insurance can add more than £100 to the cost of car insurance and £20 to the cost of home insurance. And the cheapest annual payment policy may not be the cheapest monthly payment policy.
What should you look out for?
When buying insurance for your home or car, income protection, accident protection or life insurance always consider quality as well as cost. Price comparison sites are set up to find you the cheapest possible deals. This may mean you may not get the level of cover, customer service or claims handling you expect. Getting the right cover probably costs less than you think. Having the right cover in place now can help provide you with the peace of mind that you can cope financially, no matter what life throws at you.
