The Financial Blog

CEO at Gocompare.com Hayley Parsons said:”We welcome the Defaqto report and its findings. It sends a clear message to consumers that true comparison sites should offer more than just a list of cheapest prices and hopefully it will also be a wake up call to other so called aggregators that they need to sharpen up their act. Gocompare.com is one of the five comparison sites Defaqto has highlighted as being true aggregators for home insurance and we’re very proud of the service and information we provide.

“There are greater challenges for aggregators offering home insurance than there are for car insurance. Home insurance is a more complex product and a lack of common policy wording across brokers and insurers does sometimes make it harder for aggregators to put together adequate question sets. However, this shouldn’t be an excuse for offering an inferior service. Comparison websites have enabled consumers to find the right policy and save hundreds of pounds a year on their car insurance and there are similar savings to be made when it comes to home insurance renewals.”

>>Click here to GoCompare.com!

Defaqto the independant financial data collection and research company has completed another report on home insurance. This time Defaqto has looked at comparison web sites, or aggregator sites, to see if and how they benefit consumers.

Defaqto reported on 28 aggregator web sites including Moneysupermarket.com, GoCompare.com, Tescocompare.com, Comparethemarket and Confused.com

The key findings were;

• no aggregator site offers customers ‘whole of market’ coverage, despite what the aggregators imply from their marketing
• few aggregator sites allow customers to clearly compare policies on anything other than price
• aggregators make a number of assumptions about underwriting factors in order to obtain quotations from insurers and intermediaries which could leave customers uninsured if they do not check their quotation very carefully
• some aggregator sites do not provide consumers with the ability to cover all of their insurance needs

Defaqto’s General Insurance Consultant, Mike Powell says: “The home insurance aggregation market is no where near as developed as the car insurance market. For the consumer, it appears that there are a number of sites available, but our research into this market has left us with the opinion that there are only 5 true aggregator sites. The remainder predominately provide quotations from intermediary panels, which could easily be obtained from a local broker”.

“Some of the so called aggregator sites do not allow the consumer to include cover for their possessions outside of the home” adds Powell, “This is a major area that consumers may need cover, and not being provided with the option to include this cover could be seen as an example of poor practice by the FSA”.

Powell continues, “Consumers who choose to use these price comparison sites should be careful to check exactly what they are being covered for and in particular, they should pay close attention to the excess levels”.

The Cheshire Building Society say that more and more people are are falling into financial difficulty because of the increases in the cost of living, rising debts and the impact of the all too familiar “credit crunch”. Here is the latest advice from The Cheshire on how to avoid out of control debts and stay ahead of the credit crunch;

Watch your utility bills

Utility bills can be a considerable cost and switching provider can save money. You can also help to cut costs by insulating your home properly, switching lights off in the summer and keeping the tap off while brushing your teeth.

Reduce the cost of fuel

Petrol and diesel costs are rising at record rates and by leaving the car at home for short journeys you can save money and help the environment.

Don’t Miss Payments

Missing payments on debts and bills has a detrimental impact on your credit rating, making it harder to obtain a new or re-mortgage and further credit or loans. If you think you will miss or make a late payment speak to your financial provider in the first instance and they will be able to discuss options with you.

Budget and live within your means

Many people are spending more than they earn and this is a signal for a dark financial cloud. If you have traditionally been a spender, it is never too late to change your ways by becoming a saver.

Be realistic

If you have any outstanding debts, don’t sweep them under the carpet, work out how much you owe and create a budget to get this paid off as quickly as possible.  Prioritise your outgoings and make sure all the key bills, such as mortgage or rent payments and council tax are being paid regularly and on time.

Assess your credit

Address your credit costs and estimate how much each credit card or loan is costing you and what monthly payments you can afford to make. You may be better off transferring your credit card balances to a 0 per cent deal or increasing your loan payments so you can pay the loan quicker with less interest overall.

Don’t forget your mortgage

Although you might have an existing mortgage, it is always worth shopping around in case there is a more suitable deal available for you. Always make sure the savings you make outweigh any extra costs involved in switching mortgage, such as administration and legal fees.

Keep a diary

Try to keep a diary of all your current spending to see where you are perhaps wasting money and what you can cut back on. For example, bringing lunch into work will save you a fortune and is probably healthier too.

Throw out the old

Cancel any monthly direct debits you are paying for and not using.  Direct debits for gym memberships are commonly forgotten, so instead of paying for it and not using it, cancel the monthly payment and take up jogging!

Start a pension

Think long-term savings by reviewing your pension scheme and address any necessary amends that you need.

If you are thinking about remortgaging then click here to find the best mortgage deals

If you want a loan make sure you compare loans to find the cheapest rates

If you are struggling to keep up with loan or credit card repayments click here to get some debt help

I thought the day would never come again! However, yesterday, I discovered that Sainsbury’s are offering 5 pence off every litre of fuel when you spend £50 or more in store. The £50 must be spent in a single transaction…

So, this offer matches the Tesco fuel offer I posted about at the weekend, and about time too! Hopefully we’ll see more supermarkets offering these incentives over the coming months. I can see that this is the only way consumers will ever be able to save some money on fuel bills. The good thing is everyone has to eat and it’s not difficult to spend over £50 on a weekly food shop these days no matter where you go.

This offer is available from 25/06/08 until 08/07/08 inclusive and there are certain terms and conditions that apply so make sure you pick up a leaflet from your local store. In general though as long as you spend over £50 on food items you should be OK.

The voucher is printed off separately from your till receipt so make sure the cashier gives it to you! Also make sure you don’t loose it because it’s not attached to your till receipt - it’s a totally seperate peice of paper. You only have 7 days to use the voucher too, previously with these fuel offers the vouchers were valid for 14 days so beware!

Apart from that well done Sainsbury’s and come on all you other supermarket petrol stations!! - Surely this is the best way to drive more petrol sales and keep your food shopping customers happy!??

According to Moneysupermarket figures released yesterday there are £30 billion worth of cheap fixed rate mortgages ending in July and Over half of all homeowners whose mortgages end soon haven’t started looking for a new deal - not a good move.
 
July is set to be a painful month for homeowners with cheap fixed rate mortgages, with £30 billion worth of deals due to finish this month. A Moneysupermarket.com poll of site users reveals 51 per cent of homeowners whose mortmortgages deals end soon haven’t started looking for a new one.

The poll revealed one in six have found a new deal but that monthly payments will be so much higher they fear they will struggle with repayments. A further 18 per cent have struggled to find a new deal they can afford or will be eligible for.

Louise Cuming, head of mortgages at price comparison site moneysupermarket.com, said: “Many homeowners will be plunged into a borrowing underclass in July when their fixed rate deal comes to an end. Banks are cherry picking customers, leaving many people unable to find affordable deals to service mortgages taken out in better times, when they were plentiful and easy to get hold of.

“However, burying your head in the sand isn’t going to help. Anyone whose fixed rate deal is coming to an end should start planning at least three months before the product is due to finish.

“You should approach your existing lender to find out what ‘retention’ product they will offer you. This will give you a useful benchmark to compare against other offers.

“compare mortgage rates across the market to get a rough idea if there are products available to beat those on offer from your existing lender. If you need some extra guidance, a mortgage broker should be able to recommend products to suit your circumstances.

“If you are confident you know which product is right for you, and that you are likely to be accepted, make the application directly to the lender. However, it is always worth double-checking the sums are correct and that all the costs have been factored in.

“Once you have made your choice, move quickly. Competitive deals are being pulled with very little notice and many people have been missing the boat by waiting to see if better deals pop up. In today’s mortgage climate, a bird in the hand is worth two in the bush.”

>>Click here to compare mortgage deals now!