Price comparison transparency urged
Price comparison websites are being urged to be more transparent about how much of the market they cover after consumer campaigners found huge variations in the cheapest quotes they give.
A Which? investigation looked for the cheapest like-for-like car insurance quote from 10 comparison sites including uSwitch, MoneySupermarket, GoCompare and Confused.com and found that they could vary by more than £1,500 across the market.
The consumer group was quoted between £751 and £2,280 as the cheapest price for a 22-year-old car driver living in a high-risk area. Even for a lower risk scenario, quotes varied by £150 across the 10 websites. test
Which? advised that with prices varying so widely across websites, consumers must make sure they shop around and check more than one site.
A survey by the group of its members found that less than one-third (32%) trust comparison sites to find the best price, regardless of the supplier.
Consumers should also watch out for preselected options, which could mean they end up getting quotes which do not reflect what they really want.
People should not just focus on the cheapest price as this may not give them the cover they need, Which? said.
Which? executive director Richard Lloyd said: “Price comparison sites claim to do all of the work for you but we found they don’t always guarantee people the best deal, or even the right one.
“We want comparison sites to treat customers fairly by being upfront that they don’t cover the whole market and more transparent about what is and isn’t included in the policies they’re selling.”
A spokesman for the Association of British Insurers said: “The insurance market is very competitive, enabling consumers to get the right policy for their needs at the best price.
“Don’t just buy on price – whether arranging your insurance through a comparison website, direct with an insurer, or through a broker, what matters is that you buy the right policy for your needs. So if buying online, check the cover before you click ‘go’.”
Which price comparison websites have you used? What are your views?
The Press Association
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