Why is home insurance cheaper through comparison sites?

Aia0202

Hi Everyone,

Just looking at buying my very first home insurance and hopefully get the keys this week.

Can anyone shed any light on why quotes are cheaper through the comparison sites than applying directly?

With 'More than', the same cover is around £100 more, from around £220 to £320 when applying directly.

Thanks
Andy

Quentin

Sometimes the cover being offered via the comparison site is different to buying direct, (and the excesses required are higher), to help the premium come towards the top of the list, so compare carefully to be sure you are getting what you want via the comparison site.

dunstonh

Its not always cheaper. However, as Quentin says, the product version offered by comparison sites may not be the same version offered via other distribution channels.

luci

Check the results from the comparison sites very carefully.

I no longer use them as they totally ignore anything you specify when you complete the details and return results for a completely different product.

For example I will enter £100 excess, courtesy car and protected no claim on car insurance. The results returned had a £400 excess, no courtesy car and no protected no claim.

Won't waste my time with them now.

rs65

Quentin wrote: »

Sometimes the cover being offered via the comparison site is different to buying direct, (and the excesses required are higher), to help the premium come towards the top of the list, so compare carefully to be sure you are getting what you want via the comparison site.

dunstonh wrote: »

Its not always cheaper. However, as Quentin says, the product version offered by comparison sites may not be the same version offered via other distribution channels.

I know what you are saying but are Morethan likely to have multi offerings for different distribution channels? (genuine question)

I completely agree with the points made about excesses and benefits not transferring across accurately.

Aia0202

I was careful to ensure all features were the same but as you say I cant be sure the details passed on to More than were correct and there is no option to review these.

Probably best to stump up the extra few pounds and go direct!

rs65

Morethan are currently offering £70 cashback via quidco - probably not available if you go via a comparison site.

luci

Aia0202 wrote: »

I was careful to ensure all features were the same but as you say I cant be sure the details passed on to More than were correct and there is no option to review these.

Probably best to stump up the extra few pounds and go direct!

Yes you do get the opportunity to review what has been transferred over.

Check the results page to make sure it has the correct details. Then if you go to accept the quote, double and triple check every page of the application.

However I agree with the above, you can get decent cashback on Quidco or Topcashback.

ACG

The cover your comparing could well be the same, but it doesnt mean it has everything included that a more expensive company has.

Our firm uses one company, the reason being is that we know the level of cover is pretty good. We are never going to win on price, but at the same time we dont want clients complaining to us when it doesnt pay out.
Im actually part way through reviewing one of our clients. Since the last review 18 months ago, they have had 3 payouts totaling £6k.

Would you get that that with the cheaper insurers? maybe/maybe not.

Sometimes its worth paying the extra little bit - that being said cheaper policies do have their place.

dwsjarcmcd

ACG wrote: »

The cover your comparing could well be the same, but it doesnt mean it has everything included that a more expensive company.

The OP stated the prices were both from More Th>n.

There are numerous other reasons why prices may be cheaper that are nothing to do with diminishing cover or increasing excesses. It could be that as companies can't get volumes direct, they try to compensate by generating margin as they don't have competition direct.

It could be that (particularly) with Home, Price Comparison sites are cheaper than, for example PPC (Pay Per Click) and that is reflected in the distribution channel.

Also, when people get prices on Price Comparison sites, the site gets their prices - including excesses - from the Insurers and Brokers, so it is to easy to blame Price Comparison sites, when actually it's not their doing.

InsideInsurance

dwsjarcmcd wrote: »

It could be that as companies can't get volumes direct, they try to compensate by generating margin as they don't have competition direct.

Or it can be they dont have any problems with their direct business hence can charge a higher amount via that distribution channel than via the aggregators.

It can be they have a totally different pricing model for aggregator business than from direct consumers and therefore in some circumstances one may be the cheaper and in others another. Have worked for more than one client that uses different models for different channels rather than just discounting.


The main thing to check is that the cover is identical. A fair number of insurers do offer a cut down product via the aggregators and often those cuts are not made in the headline coverages and so from a glance its not easy to tell the differences.

If the policy is word for word the same, the declared facts you've given (and they've received in the case of aggregators) are the same and limits/ deductibles are the same then it is just a commercial decision and of little/ no concern of yours