Sites like Moneysupermarket, Confused and USWICH and other comparison sites selling travel insurance and other products have been hauled over the coals in FSA report.
This article from the BBC highlights concerns raised by the FSA that:
1) Compulsory excess levels were excluded from the price, or incorrect
When you buy an insurance policy it’s obviously very important to understand the levels of cover you’re signing up to - the excess is, arguably, the most important factor, most claims tend to be for relatively small amounts and the excess you pay may mean the policy you end up with costs you much more than you expected.
2) Warnings were issued to consumers to consider other factors than price, but with little follow-up information
Warnings and long agreements hidden behind check-boxes need to be read and understood. Part of this responsibility should lie with the user but the FSA felt that the sites considered could do more to make users aware .
3) Only a limited number of product features, such as price, were listed for customers
Price is most peoples’ driving force when looking to insure against mishap but the insurance cover you’re buying is about much more than that. Giving users more information should allow them to make a more informed choice. That’s obvious!.
4) Quotes differed from the amount actually charged by a broker or insurer
This is the big one! If you don’t know how much you will get charged my advice would be to stay well away! Obviously the price comparison site is great if it’s working correctly, but really?
5*) Price Comparison Site listings are NOT impartial
I know from experience that many insurance providers do publish special rates that give them specific positions in the price tables on sites like Money Supermarket and Confused.com - all of them have to cut back on levels of cover in order to offer the lower premiums and all of them pay premium commissions to the relevant sites. Moneysupermarket take a minimum of 25% of sale price and Confused.com charging a minimum transaction value of 5 GBP.
You might think I’m bitter because XI Travel Insurance isn’t included in ANY price comparison site, even though we have a price promise and beat all of the travel insurers on there… you’d be right 
*This is my own - not mentioned in the FSA report
If you have any experience of Price comparison sites, good or bad… please leave let us know in the comments below!
3 comments ↓
I’ve always been happy with Moneysupermarket - I will still use it but perhaps pay more attention to the small print when I come to renew
[…] Authority (FSA) that raises a number of questions about insurance comparison websites. Also FSA says beware of confused.com. There are 5 reasons to beware raised by the FSA […]
Looks like somebody dugg this story dude!
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