Price comparison websites...how exactly do they work?

underlay_guru

Not naming names, but I recently did a search on a well-advertised car insurance price comparison website, of which I was given a whole host of quotes. I then applied for a quote from somewhere else which was lower than any of them...!

I smell a rat here. My impression of price comparison websites is that they provide a completely impartial selection of quotes, but i'm making an educated guess they are only promoting the insurance companies which pay them a back-hander for each referral?

dunstonh

My impression of price comparison websites is that they provide a completely impartial selection of quotes

No. They are just brokers/intermediaries offering their products via an online site rather than face to face. Its a cheaper method of distribution but it doesnt make it the absolute cheapest. Plus, its rarely whole of market. They tend to only show products from providers that can be completed online (a number of products/providers still need paper applications or manual quotes) and also cherry pick the more profitable sides of the business.

but i'm making an educated guess they are only promoting the insurance companies which pay them a back-hander for each referral?

They earn from every product that is sold. Just as you would expect with every retailer. Nothing wrong with that. However, they have been good on their advertising to give this false impression that they are independent, whole of market and cheapest.

payless

Think it goes much deeper than that... believe they charge for inclusion , plus seem to sell on details - as you will often get called