What’s the Value in General Insurance Comparison Websites?
Posted on 18 July, 2017
There is a proliferation of Insurance Comparison websites available online. To the average consumer, they appear to be a good source of information to select insurance cover – but beware!
Mostly these Comparators only compare a fraction of the market and some sites are actually owned by the insurance companies they’re supposedly comparing which creates an obvious conflict of interest.
Australia’s leading consumer advocacy group, CHOICE has recently published an article, “Comparing the Comparers”. Author Jodi Bird states “Compare the Market is owned by Budget Holdings Limited (BHL). BHL, in turn, owns insurance Auto and General, the parent company of brand names like car insurer Budget Direct. Seven out of the 10 car insurers listed on the site are owned by Auto and General so it’s no surprise that in a mystery shop of car insurance quotes, five out of the seven brands were Auto and General Insurance brands.”
Most large insurers are reluctant to participate in online Comparator sites because they focus on price and not coverage or security through claims paying capacity. So Comparator websites can give smaller competitors a foot in the door to the market through large commissions paid to the comparator owners.
Donnellys has access to an extensive policy comparison online tool which compares up to 200 policy features, conditions and exclusions and includes a great majority of the market players. We can provide this report obligation-free to people wanting comprehensive information about the products available from the whole range of insurers or if they want a second opinion about their existing cover’s quality.
We also provide an easy to follow a report on our website: http://www.donnellys.com.au/documents/ so you can see for yourself how the likes of Budget Direct’s policies compare with others available and what coverage you might be missing out on insuring with them.
But comparing individual policies is sometimes like comparing an apple and an orange and also you don’t know if the apple is rotten inside until it is too late!
The most important factor to consider when buying a policy is Claims. Only a licensed insurance broker can legally provide claims assistance to their clients as their agent. A broker can represent clients in negotiations with an insurer over fine print technicalities to achieve a prompt and fair settlement.
Check Donnellys’ online testimonials about what many clients have appreciated about our claims service for them.
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