An investigation conducted by Which? has revealed that it is important to treat results from comparison sites with care. Customer satisfaction was also shown to be poor compared with other industries.
What were the findings of the comparison site investigation?
A survey of 6,000 Which? members was conducted where eleven of the biggest names in comparison sites were rated. MoneyExpert.com and MoneyFacts.co.uk were ranked the highest but their customer satisfaction scores were just 46%. Market leader MoneySupermarket.com ranked fourth in the survey.
Do comparison sites provide the best price?
According to the survey, users of comparison sites on average visit two sites before making a decision but around 13% will visit four or more sites to get the best price. Comparing like-for-like car insurance quotes across a number of sites rarely found the same price, with some differing by as much as £1,500. With prices quoted varying so widely it is always advisable to shop around as not all sites cover the whole market.
Why is there such a difference in pricing?
As stated above, not all comparison sites compare the whole market. Many sites only show those companies that pay them commission, so make sure you read small print on the site before buying. Consumers also need to be aware that the cheapest price is not the only thing to consider as many sites apply a higher excess by default, therefore making the premium appear cheaper.
How can I get the best out of comparison sites?
- don't just opt for the cheapest deal, check the cover provided and compulsory excess
- shop around by visiting a number of comparison sites
- once you have found a cheaper quote use this to negotiate a cheaper deal with you current provider.
