Notes

Never Compare Insurance Based On Price Alone
Insurance comparison website s simplify the insurance buying process & most people now buy insurance through these sites. Knowing the class of cover you need, you type several details into any of these sites and instantly access multiple insurance firms with the cheapest quote displayed in a few seconds.

While the process of buying insurance especially car and home insurance appear simplified, same can't be said of the products.

The insured enters right into a contract each and every time he/she buys insurance coverage and like any contract has to be examined carefully to see 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 and also require had a claim declined since they based their insurance purchase decision on price (premium) alone.

As a way of illustrating the way the usage of price alone to choose an appropriate insurance coverage could be problematic, why don't we 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 may also have a burger made with a bun of similar size for �5.99. The difference in the price of both burgers being the topping.

While the cheaper burger may only contain beef, the more expensive offering will most likely have an improved quality beef, possibly bacon plus lettuce, onion, Mayonnaise, mushroom and pickles.

The �0.99 burger (let's call this the bare-bones burger) may interest some but may not necessarily be what others want.

The �5.99 burger (ROBUST burger) though more costly, that are what the other person must satisfy his appetite and is ready to pay the extra to meet his needs provided he is alert to the extras which soon add up to get this to other burger expensive.

Bare-bones vs Comprehensive policies

Much like the example above, plans can also be said to either bare-bones or ROBUST/comprehensive. However, it is not always possible for every insurance buyer to tell the difference between the bare-bones policy and the comprehensive, especially when presented in abridged versions with the cheapest ranked topmost.

get more info covered as standard by insurance company 'A' could be sold as an add-on by company 'B'.

The premium quoted by 'A' may thus appear higher than that of 'B' as the standard policy 'B' is offering is really a bare-bones cover. If you then choose this policy as a result of cheaper price without realizing that a number of the risks you need aren't included, this could result in a dispute whenever a loss/claim is reported.

check here of Interest

A few of the comparison websites are either wholly or partly owned by Insurance firms and thus a conflict of interest may arise. Outcomes of premiums quoted could thus be skewed towards the parent or partner companies.

Operators of the sites can also be swayed by the offer high commission rates leading to the sites promoting particular brands.

Some Insurers aren't Included

As at a time of writing, some of the largest insurance firms in Britain notably Aviva and Direct Line aren't listed on comparison websites so it's possible that improved terms could be obtained from companies not listed.

Finally, it is worth note that these comparison sites only serve as a go-between, linking the prospective buyer to the insurance firms. They only present premiums generated using algorithms furnished by insurers and afterward direct a buyer to the web site of the insurer with the chosen quote. In the event that a dispute arises, traceable to a misunderstanding at the idea of quotation, these firms are unlikely to assume responsibility.

Ikenna is a Chartered Insurance practitioner based in London with over 2 decades experience in Insurance operations. He's got sold Insurance policies in the past, and at other times been involved in drafting / wording insurance contracts and also helping customers through the insurance claims process.

His unique perspective on insurance is therefore reflected in his articles which he hopes readers will find incisive and beneficial.
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