Price comparison site warning from consumer watchdog Which?
I’ve just spotted the story below on Sky News; Price comparison sites slammed in Which? report
This is interesting because I’ve always found comparison web sites to be very useful and I’d recomend them to anyone looking for a better deal on a credit card, loan, mortgage, motor or home insurance. You only have to look at the various products you can compare on a site like Moneysupermarket.com to see it must be worthwhile using.
So, I’m quite surprised at the lastest report from Which? - It would make absolute sense to me that you have to check a few comparison sites when comparing products just to make sure there isn’t a better deal at one rather than another. If you were shopping in the high street for a pair of trainers you’d check a few sports shops to make sure you get the best price - I know I always do; sometimes, using my fantasitc trainers comparison, the price can very by about £10! You’ll always find the most fashionable looking shops charging the highest prices… Anyway, here’s the Which? comparison site story;
Sites like moneysupermarket.com, gocompare.com and confused.com have established themselves as the first port of call for many people shopping for everything from travel insurance to mortgages.
The sites take a few details from the user and come up with comparisons of products across the market, indicating which is cheapest.
But when consumer group Which? surveyed the sites and compared the findings with each other, it found large variations.
A typical search for home contents insurance on Gocompare.com, Confused.com and Moneysupermarket.com brought up quotes from from £51 on Gocompare.com to £71 on Confused.com.
There was a similar variation for standard credit card rates, with Moneysupermarket.com offering the cheapest deal of 6.8% APR, while Gocompare.com offered a best rate of 12.9% APR.
The research found that in the case of a Bradford & Bingley home contents policy, the cover could be bought for £68 on the group’s own website, while it cost £72 through Moneysupermarket.com, £83 on Confused.com and £100 on Gocompare.com.
Martyn Hocking, editor of Which? Money, said: “You need to use two or three comparison sites and check directly with providers to get the best quote, and remember that cheapest isn’t always best - it’s a false economy if you don’t get enough cover for your needs or have to pay a huge excess if you claim.”
Hayley Parsons, chief executive officer of Gocompare.com, said: “This research is nearly two months out of date and since then we’ve added even more insurers and products to our service and will be adding still more in the very near future.”
Stuart Glendinning, managing director of Moneysupermarket.com, said: “Our customer promise makes it clear that our aim is to compare more providers than any other site, to list every provider (and make clear which ones we don’t list and why), that the price you see is the price you pay and that you won’t get cheaper by going direct.”
Carlton Hood, chief executive of Confused.com, said: “The questions we ask are designed to offer customers ‘real’ prices and not estimates - something which we pride ourselves on.”
August 27th, 2008 at 12:29 am
It is true that one should compare a variety of these comparison sites. As Mr. Hocking was quoted as saying, it is also important to compare these findings directly with the service providers to ensure the consumer is getting the best deal. At http://www.simplyfinance.co.uk , we consistently point out that education on the products and services is the most important factor in getting the best price. Another point I would have to agree with Mr. Hocking on is that it truly is a “false economy,” to bet on the cheapest deal. Just because it is the least expensive, does not guarantee the consumer proper coverage.
Check out http://www.simlyfinance.co.uk for another resource in comparing everything from insurance, to personal loans, to mortgages!