Consumers Warned Over Comparison Websites

With many of us trying to save money by switching our insurance providers, comparison websites are a popular way of finding the best deals. However, this is not the great idea it seems at first according to recent research.

Insurance comparison websites may be misleading consumers by providing inaccurate or out of date information on policies, according to the Financial Services Authority. In a review of 17 comparison sites the watchdog concluded that in some cases the clarity and fairness of the information being provided could be improved.

It said that some sites were failing to list all the features of a policy and others were using information that was no longer accurate, which could mislead consumers.

Too much emphasis on the price of various policies as opposed to the kind of protection they offer could also cause consumers to purchase unsuitable cover. A spokesman at the FSA commented: "Comparison websites should treat customers fairly and provide information that is clear, fair and not misleading."

He advised consumers to use comparison sites shrewdly and to read the terms and conditions of insurance policies carefully instead of being drawn in by the headline rate.

A follow-up review six months later found that standards had improved, but the FSA still had concerns about aggregators' use of assumptions during the quotation process.

In motor insurance, for instance, common assumptions are that the applicant will be the main driver and will not be using the car for commercial purposes. The review found that such assumptions were not always set out clearly and were often difficult for the customer to find, let alone correct.

The regulator was also concerned that some sites failed to make it clear how much of the quoted excess was compulsory and how much voluntary. Other issues include ensuring quotes only include the "add ons" the customer has requested and displaying clearly all the key features and exclusions of the cover and the total price.

If you would like to know more about insurance why not ask AnswerBank Insurance.