Insurance comparison websites simplify the insurance buying
process and most people now buy insurance through these sites. Once you know
the class of cover you need, you type a few details into any of these sites and
instantly gain access to multiple insurance companies with the cheapest quote
displayed in a few seconds.
While the process of buying insurance especially car and
home insurance appear simplified, same cannot be said of the products.
The insured enters into a contract every time he/she buys an
insurance policy and like any contract needs to be examined carefully to
ascertain its suitability for the buyer.
The frequency of advertisement in both the print and
electronic media by the owners of these sites drowns out complaints and
muttering of people who may have had a claim declined because they based their
insurance purchase decision on price (premium) alone.
As a way of illustrating how the use of price alone to
select an appropriate insurance policy could be problematic, let us look at how
the price of a burger is determined.
£0.99 could fetch you a burger at a McDonald's restaurant
but that same store will also have a burger made with a bun of similar size for
£5.99. The difference in the price of the two burgers being the topping.
While the cheaper burger may only contain beef, the more
expensive offering will probably have a better quality beef, possibly bacon
plus lettuce, onion, Mayonnaise, mushroom and pickles.
The £0.99 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 expensive, may
just be what the other person needs to satisfy his appetite and is willing to
pay the extra to meet his needs provided he is aware of the extras which add up
to make this other burger expensive.
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