Which
The consumer finance magazine checked the three largest price comparison websites for home contents, car and travel insurance policies, as well as loans and credit cards, to find out how their prices compared and how useful they were for finding a suitable deal*(http://www.which.co.uk/
It found that in most cases, the cheapest quote was different on each website. When searching for a home contents policy, for example, the cheapest quote varied from £51 on Gocompare.com to £71 on Confused.com. The cheapest standard-rate credit card varied from 6.8% APR on Moneysupermarket.com to 12.9% APR on Gocompare.com.
In some cases it was possible to get a cheaper quote directly from the insurer (http://www.which.co.uk/
Which? Money also found that a true comparison was difficult as each website asked different questions and showed different product features. In some cases it was necessary to visit insurers’ own websites to check details such as the excess that people would need to pay if they made an insurance claim. In other cases the cheapest insurance that was offered did not provide as much cover as Which? Money Best Buys (http://www.which.co.uk/
Martyn Hocking, Editor, Which? Money, says:
“With such an array of financial products to choose from, it can be tempting to turn to a price comparison site to do the legwork for you. But you might be very confused to find that different sites can give you vastly different quotes and often don’t give enough information for you to make an informed choice.
“You need to use two or three comparison sites and check directly with providers to get the best quote, and remember that cheapest isn’t always best – it’s a false economy if you don’t get enough cover for your needs or have to pay a huge excess if you claim.”
Research notes
* Which? Money checked Moneysupermarket.com, Gocompare.com and Confused.com for:
Home contents insurance - £40,000 cover for a 1960s three-bedroom semi-detached house in a medium-risk postcode for a 40-year-old with five years’ no claims.
Car insurance – policy including a courtesy car for a five-door Renault Laguna (a medium-risk car) for a 40-year-old couple living in a low-risk area with five years’ no claims and on-street parking.
Travel insurance – worldwide annual policy for a 40-year-old woman, with £3,000 of cover for cancellation and curtailment and £1,500 for baggage (minimum level).
Personal loan – £10,000 loan over five years (unsecured).
Credit card – standard-rate credit card.
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