Be careful over accuracy of some insurance price comparison sites
Over the past few years an increasing number of us have started to use various price comparison sites in order to help us to get better deals and find the most competitive prices on a range of services and products, from utilities and financial products to insurance services and products. There are some sites that specialise in finding insurance related services for consumers, and whilst they can save you time, hassle, and even money in some cases it is also important for consumers to bear in mind that the information may not always be totally accurate.
The Financial Services Authority recently carried out a review of a number of insurance price comparison websites, and found that whilst some offered good, up to date information others contained information that was inaccurate or out of doubt.
Consumers purchase all sorts of insurance related products through these sites, and last year 25% of all motor insurance was taken through these sites. Other types of insurance that consumers find through these price comparison sites include home insurance, pet insurance, and life insurance.
Officials from the FSA are going to be checking on the details of around seventeen insurance price comparison sites in order to check on the accuracy of the information provided. The FSA has stated that there was mixed evidence relating to the accuracy of the information that was being provided to consumers through these sites, and this is something that consumers need to be aware of, as many may simply assume that the information that they receive is up to date and accurate.
The FSA wants the various insurance price comparison sites to exercise consistency when it comes to the level of information provided about different policies, and wants all information to be up to date and accurate. With an increasing number of price comparison sites coming onto the market due to popularity amongst consumers looking for better deals it has become more important for sites to ensure that the information being provided is quality information.
Ed Harley from the FSA said: “We welcome innovation and competition in the rapidly expanding insurance comparison website market. However, we are keen that the market develops in a way that ensures customers are treated fairly, and expect comparison sites to provide information that is clear, fair and not misleading.”
He added: “We recognise that many consumers use these websites to search for insurance products. Consumers should shop around for the best deal, but it is important that they compare what is covered by a policy and not just focus on the price.”
Steve White from the British Insurance Brokers Association said that Biba welcomed the review by the FSA in order to ensure high quality insurance price comparison sites, stating: “This is a great start, but the FSA must go further. Like brokers, comparison sites should guarantee their quotes. We are pleased that the FSA is calling for comparison sites to give more information to consumers.”
An official from uswitch.com added: “We welcome any initiative that will result in increased consumer confidence and are happy to be actively involved in any consultations on this issue.”
Tags: fsa, specialise, British Insurance Brokers Association – BIBA, consumer, best deal, price comparison sites, various price comparison
