Today Competition and Markets Authority issued a report on insurance comparison sites. While the sites were generally good, one unnamed company was unsatisfactory and to quote the press release “We are also taking enforcement action where we suspect the law may have been broken.”
What is your experience of using comparison sites for financial products?
Do you feel they can be trusted or should you shop around?
My experience has been mixed and I would strongly recommend looking around. The charge for the standard product may be competitive but can have onerous limitations or when you have to tune it to your needs the price goes up considerably. Renewal premiums often leap.
The longer the duration of the product the more important it is to make sure you get the right deal – most insurance policies are annual, but mortgages and personal loans, they can be much longer with high withdrawal penalties.
Are the algorithms used to compare the products fair?
Do they offer a level playing field across the expected duration of the product ?
Do they favour a provider?
The comparison sites earn their money on the business you book through them. Are they being seduced by the rates of commission paid? Have they surveyed the entire market?