These insurance comparison websites make it easy to buy insurance. Once you have identified the type of coverage you require, all you need to do is enter a few details on any of these websites and you will instantly be able to access multiple insurance companies. The cheapest quote is displayed within a matter of seconds.
Although the buying of insurance, especially home and car insurance seems simple, the product selection process is not.
When an insured purchases insurance, he/she enters into a contract. It is important to carefully examine any contract to determine its suitability.
Advertisement in print and electronic media is so common that it drowns out the complaints of those who might have had their claim denied. This could be because the owner of these websites based their insurance purchase decision solely on price (premium).
Let’s take a look at the pricing of a hamburger to see how it is determined.
A burger at McDonald’s could cost you PS0.99, but the same restaurant will sell a similar sized burger for PS5.99. The topping is what makes the burgers different.
The cheapest burger might only contain beef. However, the better quality beef will be available in the more expensive burgers.
Although the PS0.99 burger (or bare-bones hamburger) may be appealing to some, it may not be what others desire.
Although the PS5.99 ROBUST burger is more expensive, it may be just what someone needs to satisfy their appetite. He is only required to know the additional costs that make this burger more expensive.
Bare-bones vs Comprehensive policies
Much like the example above, insurance policies can also be said to either bare-bones or ROBUST/comprehensive. It is difficult for insurance buyers to distinguish between the comprehensive and the bare-bones policies, especially when they are presented in simplified versions.
Company ‘B’ may offer an add-on to cover risks that are not covered by insurance company A.
Because the standard policy offered by ‘B,’ is a barebones coverage, the premium that ‘A’ might quote may be higher than that of “B”. This could result in a dispute if you choose this policy based on the lower price but fail to realize that you are missing some risks.
Possible conflict of interest
Comparison websites may be owned partially or wholly by Insurance companies. This could lead to conflicts of interest. The results of premiums could be biased in favor of the parent or partner company.
These sites could also attract operators who are enticed by high commission rates that allow them to promote particular brands.
Some Insurers may not be included
At the time of writing, many of the biggest insurance companies in Britain, including Aviva and Direct Line, are not listed on any comparison websites. It is possible that companies not listed could offer better terms.
It is important to note that these comparison websites only act as a link between the potential buyer and the insurance companies. These sites only show premiums generated by algorithms provided by insurers. They then direct the buyer to the site of the insurer offering the selected quote. These firms will not assume liability if there is a dispute, which could be traced back to a misinterpretation at the point where the quote was generated.
Ikenna, a Chartered Insurance Practitioner based in London, has over twenty years experience in Insurance operations. He has previously sold insurance policies and been involved in writing/wording insurance contracts. He also assists customers with their insurance claims.
