Consumers 'should not be basing insurance decisions on price alone'
Published On 12 February 2008
Last month, it was revealed that the FSA had concerns about whether the ranking of insurance policies on various price comparison sites constituted advice and so would need to be more carefully regulated.Now, experts at Defaqto have suggested that it is vital that consumers do not simply look at the prices of various policies but examine the insurance deal in detail to make sure it offers them exactly what they require.
Brian Brown, head of insight at Defaqto, explained: "We have always emphasised the need for consumers to check out the quality of insurance policies, rather than concentrating just on price.
"If a policy does not provide the appropriate level of cover, while it may be relatively cheaper than one that does, it could prove very costly if something happened that wasn't covered or not covered to the right level."
Recently, Graeme Trudgill, from the British Insurance Brokers' Association, said that it was always important for consumers to "get a second opinion" when looking for any insurance product.
"If you go to a broker, you can get 40 products and there is bound to be one that gives you a better deal than the one with your bank. To save money, look around."
