A new study reveals that 88 percent of new and young drivers aren’t aware of the added charges that obtaining insurance from a comparison website incurs. Such websites charge insurance companies a commission for policies sold via their platform.
In total, 61 percent of the 750 drivers surveyed said they believed price comparison websites were the best place to find cheap insurance. Just 11 percent said they contacted insurers independently after getting quotations from a comparison site.
According to Honch, the insurance company behind the research, price comparison sites charge £60 per policy sold via their service. And that cost is passed on to policy buyers.
Unsurprisingly, once informed, 97 percent of those questioned said this was unfair.
“Drivers across the UK are being lulled into a false sense of security by price comparison websites, whose marketing tactics and friendly-faced company mascots can be very disarming,” said Gavin Sewell, CEO of Honcho. “However, these companies know exactly what they’re doing when it comes to squeezing a bit more money out of hard-pressed consumers and cover their tracks well
“We’re relieved that regulatory bodies such as the Financial Conduct Authority are beginning to break their silence on the issues currently plaguing the insurance sector and are looking to put measures in place to restore decorum to the industry.”