Insurance comparison websites simplify the insurance buying process and most people now buy insurance through these sites. Once you know the class of cover you need, you type a few details into any of these sites and instantly gain access to multiple insurance companies with the cheapest quote displayed in a few seconds.
While the process of buying insurance especially car and home insurance appear simplified, same cannot be said of the products.
The insured enters into a contract every time he/she buys an insurance policy and like any contract needs to be examined carefully to ascertain its suitability for the buyer.
The frequency of advertisement in both the print and electronic media by the owners of these sites drowns out complaints and muttering of people who may have had a claim declined because they based their insurance purchase decision on price (premium) alone. As a way of illustrating how the use of price alone to select an appropriate insurance policy could be problematic, let us look at how the price of a burger is determined. £0.99 could fetch you a burger at a McDonald's restaurant but that same store will also have a burger made with a bun of similar size for £5.99. The difference in the price of the two burgers being the topping. While the cheaper burger may only contain beef, the more expensive offering will probably have a better quality beef, possibly bacon plus lettuce, onion, Mayonnaise, mushroom and pickles.
The frequency of advertisement in both the print and electronic media by the owners of these sites drowns out complaints and muttering of people who may have had a claim declined because they based their insurance purchase decision on price (premium) alone. As a way of illustrating how the use of price alone to select an appropriate insurance policy could be problematic, let us look at how the price of a burger is determined. £0.99 could fetch you a burger at a McDonald's restaurant but that same store will also have a burger made with a bun of similar size for £5.99. The difference in the price of the two burgers being the topping. While the cheaper burger may only contain beef, the more expensive offering will probably have a better quality beef, possibly bacon plus lettuce, onion, Mayonnaise, mushroom and pickles.