Insurance comparison websites simplify the purchasing process and most
people now buy insurance through these sites. When you know the course
of canopy that you need, you type a few details into some of these
sites and instantly access multiple insurance companies with the
smallest expensive quote displayed in a few minutes or seconds.
While the process of buying insurance, especially car and home
insurance, appear to be simplified, the same cannot be said about the
merchandise.
The insured makes its way into a contract each and every time he buys
an insurance policy and, like any contract, needs to be examined
carefully to determine its suitability for the buyer.
The frequency of advertisement in both the printed and electronic
press by the owners of these sites drowns away complaints and
muttering of folks who may have a new claim declined because they
based their insurance purchase decision on price alone.
By illustrating how the use of price alone to select an appropriate
insurance plan could be problematic, we will look at how the price of
your burger is determined.
£0.95 could fetch you a burger at a very big restaurant but that same
store will also have a burger made with a bun of similar size for
£5.95, the difference in the buying price of the two hamburgers being
the topping.
When the cheaper burger may only contain beef, a lot more expensive
offering will probably have an improved quality ground beef, possibly
bacon plus member of the lettuce family, Mayonnaise, mushroom, onion,
and pickles.
The £0.95 burger (let's call this the bare-bones burger) may appeal to
some but may not necessarily be what others want.
The £5.99 burger (Robust burger) though more pricey, may just be what
the other person needs to gratify his appetite and is willing to pay
the extra to meet his needs provided he is aware of the bonuses which
add up to make this other hamburger expensive.
Bare-bones vs In-depth policies
Much like the instance above, insurance guidelines can be believed to
be either bare-bones or Robust/comprehensive. However, it is not
always easy for each and every insurance buyer to share with the
difference between the bare-bones policy and the comprehensive, in
particular when presented in abridged versions with the cheapest
ranked topmost.
Dangers covered as standard by insurance company 'A' could be sold as
an add-on by company 'B':
The premium quoted by 'A' may thus look greater than that of 'B'
because the normal policy that 'B' is offering is a bare-bones cover.
In case you then opt for this insurance plan due to cheaper price
without realizing that some of the risks you may need are not
included, this could lead to a dispute each time a loss/claim is
reported.
Conceivable Conflict of Interest:
A lot of the comparison websites are either wholly or partly owned by
Insurance agencies and so, a conflict of interest may arise. Outcomes
of premiums quoted could thus be skewed in favour of the parent or
guardian or partner companies.
Providers of these sites may also be swayed by offering high
percentage rates resulting in the sites promoting particular brands.
Some Insurers are not Included:
As each time of writing, some of the major insurance companies in
Britain, notably Aviva and Direct Line, are not relatively listed
websites. So, it is possible that improved conditions could be from
companies not shown.
Conclusively, it is noteworthy to be aware that these evaluation sites
only serve as a go-between, linking the possible buyer to the
insurance companies. They only present premiums made by using
algorithms furnished by insurance providers and afterward direct a
buyer to the website of the insurer with the chosen quote. In the
event that a dispute arises, traceable to a misunderstanding at the
idea of quotation, these businesses are unlikely to assume
responsibility.
Pioneer is a Chartered Insurance practitioner based in the United
States with over three decades experience in Insurance operations. He
has sold Insurance policies in past times, and, at other times, even
recently, he has been linked to drafting / wording and terminology
insurance plans as well as helping customers through the insurance
claims process.
His unique perspective on insurance is therefore mirrored in his
articles which he hopes readers will discover incisive and beneficial.
