Aug
12
Harvey McEwan asked:
Price comparison sites are a great way to save time and money when looking for an insurance quote on everything from life insurance to travel cover. This is an industry that has grown significantly over the past decade, even going so far as to grow 50% year on the year. While price checking is marketed as a hassle-free approach to getting an insurance quote there are still points that consumers forget or don’t know about which can quickly turn price comparison into the antithesis of an easy ride. We discuss in detail the main points that consumers should be wary about.
Firstly, price comparison sites are great for offering a spread of providers right up to long-established names to new players on the market. That said, consumers should remember that the providers listed on any price checker website is the not the be all and end all of products and prices that are on the market. Some credit cards companies, mortgage lenders and insurance providers decide to exempt themselves from price comparison sites so consumers should instead use price comparison sites as another tool for gathering information on financial products.
As the name would suggest, cost comparison works on a basis on comparing prices from one provider to another. Unlike meetings with a mortgage advisor or independent financial advisor, advice on price comparison sites is limited and consumers could the mistake of opting for a cheaper product which is in fact more expensive in the long run. Again, using a price comparison site to get a broad overview of the market is a great place to start but seeking further advice from the provider itself or from an independent source is always the most sensible course of action before going ahead with a purchase.
Finally, consumers should always remember that a cost comparison site works on commission and a successful loan sale or credit card sign up can result in hundreds of pounds of profit for that particular website. With this in mind, customer must remember that sites such as these are not impartial and can in fact encourage potential customers to take out certain products with the lure of gifts, vouchers and money off. These products might not be the most appropriate for them but are seen to be a better deal given the ad-ons attached.
Need to compare life insurance, travel cover or even your mortgage? Price comparison sites are a great place to start but remember to follow the advice above to get the most from your provider and financial product.
Dawn
Price comparison sites are a great way to save time and money when looking for an insurance quote on everything from life insurance to travel cover. This is an industry that has grown significantly over the past decade, even going so far as to grow 50% year on the year. While price checking is marketed as a hassle-free approach to getting an insurance quote there are still points that consumers forget or don’t know about which can quickly turn price comparison into the antithesis of an easy ride. We discuss in detail the main points that consumers should be wary about.
Firstly, price comparison sites are great for offering a spread of providers right up to long-established names to new players on the market. That said, consumers should remember that the providers listed on any price checker website is the not the be all and end all of products and prices that are on the market. Some credit cards companies, mortgage lenders and insurance providers decide to exempt themselves from price comparison sites so consumers should instead use price comparison sites as another tool for gathering information on financial products.
As the name would suggest, cost comparison works on a basis on comparing prices from one provider to another. Unlike meetings with a mortgage advisor or independent financial advisor, advice on price comparison sites is limited and consumers could the mistake of opting for a cheaper product which is in fact more expensive in the long run. Again, using a price comparison site to get a broad overview of the market is a great place to start but seeking further advice from the provider itself or from an independent source is always the most sensible course of action before going ahead with a purchase.
Finally, consumers should always remember that a cost comparison site works on commission and a successful loan sale or credit card sign up can result in hundreds of pounds of profit for that particular website. With this in mind, customer must remember that sites such as these are not impartial and can in fact encourage potential customers to take out certain products with the lure of gifts, vouchers and money off. These products might not be the most appropriate for them but are seen to be a better deal given the ad-ons attached.
Need to compare life insurance, travel cover or even your mortgage? Price comparison sites are a great place to start but remember to follow the advice above to get the most from your provider and financial product.
Dawn