The power of price comparison sites

Dec 18, 2017 | Tony Byrne's View

 

I’ve been using price comparison sites for many years admittedly mainly for car and home insurance but there is a plethora of financial cost saving areas to choose from. Moneysupermarket.com lists the following 9 areas.

 

  • Car Insurance
  • Travel Insurance
  • Home Insurance
  • Energy
  • Credit Cards
  • Savings
  • Loans
  • Life insurance
  • Holidays

At the time of writing moneysupermarket.com is offering a £75 voucher to spend at Argos, M&S or Next if you buy life insurance via their website. If you switch your bank current account via their site you will receive up to £200 cashback. These offers are in addition to the savings you make from switching to lower cost providers in the first place!

The well-known price comparison site comparethemarket.com may have very catchy Meerkat adverts but I’ve always preferred moneysupermarket.com simply because it offers a wider range of insurance companies than comparethemarket.com. Having said that comparethemarket.com does appear to have differentiated itself somewhat from moneysupermarket.com by offering a wide range of specialist insurances as well as broadband and mobile phone packages. It offers 2 for 1 cinema tickets when you buy through their website too.

There are of course many other price comparison sites on the web but for the purpose of this article I thought I would focus on two of the most well-known ones.

If you are researching comparison quotes for financial products then you should consider getting quotes from both sites before comparing them. This is a process I would recommend you do at least once every 2-3 years and ideally annually. It doesn’t take much time and the annual cost savings will surprise you so it is an exercise well worth doing.

Of course you have to be aware that not all financial product providers are listed on these price comparison websites. Some insurance companies such as Direct Line can only be contacted directly. Why is this? Well it’s because not all companies pay a commission so price comparison sites do not list them!

You see price comparison sites are not charities. They are businesses, middlemen really, which receive commissions for the sale of financial products. Glorified simplistic online brokers if you like.

In addition to not listing all providers there are further disadvantages in using such financial comparison sites such as;

  1. More specialist or high value insurance is often not available on such sites.
  2. You may not be comparing like for like financial products especially insurance.
  3. You may find cheaper costs but is it on a true like for like basis?

If you need high value or specialist insurance why not contact us and we will refer you to one of our panel of specialist insurance brokers who will be able to give you more bespoke advice?

So in conclusion do use price comparison sites on a regular basis but be aware of their limitations. For further advice on cost savings why not contact us for a financial review? You know it makes sense.

 

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