You are here: Home - Insurance - News -

Consumers use comparison sites to get better deal with current provider

Written by: Paloma Kubiak
Price comparison sites are popular among consumers looking for the best deal, but a market study reveals they are also used for research.

A report into digital comparison tools (DCT) by the Competition and Markets Authority (CMA) found comparison sites have become an important way for many people to buy services such as insurance and utilities, with 84% of people looking for car insurance using such a site in the past year.

More than half (52%) used comparison sites for broadband and 67% used them to find the best energy deal.

However, the survey of 4,000 consumers revealed many people actually use comparison sites for research with 44% admitting they don’t buy directly through them. Instead, they use the information gathered to negotiate a better deal with their existing provider.

Many of those polled said they use more than one comparison site to find the best deal.

The CMA report found comparison sites generally work well for consumers but improvements may be necessary to help more people get even better deals. It identified four possible areas of concern:

  • whether sites could be more transparent – for instance in their market coverage and business models, and in their treatment of personal data
  • whether the benefits they can offer could be further improved if suppliers made more information available
  • certain practices and contractual arrangements that could limit healthy competition between DCTs
  • the way DCTs are regulated

As a result, the regulator is seeking further views on these areas for the next phase of its study with a final report set for publication by 28 September 2017.

Dan Plant, editor-in-chief at MoneySuperMarket, said: “Simple and clear switching is vital to ensuring people get a better deal and the CMA is right to check the DCT market is working competitively and in the consumer interest.

“We are pleased the CMA’s findings are broadly positive, acknowledging that DCTs drive more choice, lower prices and better matching between consumers and suppliers. Its research also shows 85% of internet users have used a DCT, 89% understood DCTs do not show whole of market, and more than 90% were satisfied.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
New 12-sided £1 coin launches: what it means for your round pounds

The “most secure” £1 coin enters circulation today but you’ll have six months to spend or exchange your old round...