What Do Price Comparison Sites Mean For The UK Insurance Market?

by - Friday, June 22, 2018

How often do you shop around for the best deals? If you were looking for a new home insurance policy or your car insurance was due for renewal, would you use a price comparison website? Statistics show that around 10 million people in the UK use comparison sites to find the best prices on insurance and financial products, but what does the rise of these sites mean for consumers, and the insurance market in general? Price comparison websites gather and import data to provide web users with a selection of prices and a brief description of what an individual policy or product offers.

Search results can be filtered to make them relevant to the user, and you can follow links to buy a specific product or insurance plan. The aim of these sites is to make it quick and easy for consumers to compare different companies and policies. For consumers, it’s never been easier to have a look at prices and take advantage of the best offers. The growth of price comparison websites has undoubtedly impacted the insurance market. Consumers now have more choice, and insurance providers have to work harder to offer value for money.

As the infographic shows, the majority of customers are influenced by cost. The transparency of pricing has also improved, and it’s easier for users to see what they’re actually getting for their money. Comparison sites make money from advertising and sponsored results, but they also charge commission. It is estimated that consumers pay around £650 million in commission per year. Comparison sites have also highlighted the fact that there is little difference in products and services offered by different providers and companies.
 
Infographic Created By moneypug

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