Price comparison sites Top tips for using price comparison websites

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Use comparison websites carefully to ensure you get the right deals

Sticking with the same insurance, credit card or savings account provider year after year is likely to mean you don't get the best deal - and in tough economic times, we all need our money to be working as hard as possible. 

Using price comparison websites is a smart way to compare the financial products you have with the newer, better deals that might be out there. What's more, they can make switching simple and easy.

However, it's important to use price comparison sites wisely and be aware of their pitfalls before logging on. Otherwise, you could end up out of pocket. 

1. Don't use just one price comparison site

As most people are aware, price comparison sites can't claim to trawl the whole market for the very best financial products in every category. For this reason, it makes sense to use several price comparison sites before choosing which product to take out. Our experts recommend running your search through a few and watching out for any differences between the results they throw up.

It's also worth remembering that some financial product providers choose not to be featured on price comparison sites. For example, insurance policies from the likes of Direct Line and Aviva won't be included in the results any price comparison site returns when you search - even if they might be the most suitable deals for you. 

To compare products from companies that don't subscribe to comparison sites, you'll have to get quotes from them individually - although this shouldn't take more than a few minutes per firm and could be well worth the effort.

Although it takes a little more time to use several comparison sites and look at what 'standalone' companies have to offer, this is the best way to make sure you don't lose out on the best deal. 

2. Beware assumptions that could invalidate your insurance

Some price comparison websites will make assumptions about your circumstances when you visit them for a quote. In many cases these may be appropriate to your needs - but be careful to keep an eye on them, as some people will find the 'standard' situations used by comparison sites when serving up quotations do not apply to them.

For example, if your home has a thatched roof and you are buying a home insurance policy, or if you live on a flood plain, you may have to provide the website with this specific information - and if you forget or can't find a way to do so, you could be at risk of buying an insurance policy that, if the worst happened, you may not be able to claim on. 

If you've used a price comparison website and aren't completely confident that the deals it has presented you with are right for your circumstances, phone the product provider directly to be sure. 

3. Make sure the right boxes are ticked

Pre-ticked boxes often feature on price comparison websites - and ignoring them, or failing to amend what has been pre-selected for you, could have serious consequences. 

It isn't unusual, for example, for a price comparison website to assume that you do not have a criminal record and pre-tick a box stating that you have no convictions - but if you have been convicted of an offence in the past and don't untick the box yourself, you could be left with an insurance policy that won't pay out when you need it to. 

Likewise, some price comparison websites pre-tick boxes agreeing that customers will pay for financial products such as car insurance either annually (in one lump sum) or monthly (usually by direct debit). 

Paying for insurance monthly is often the most expensive option, so you may want to avoid this if you can - but equally, not everyone will be able to afford to pay their entire insurance premium up-front, so be sure to check whether the site you are using has pre-selected either option, and to choose the one that suits you. 

4. Consider quality as well as cost

Finally, it's worth remembering that price comparison websites are set up to find customers the cheapest possible deals when it comes to products like car and home insurance - and this may mean you don't get the level of cover you would expect, or benefit from the standard of customer service you would like. 

Quality is as important a cost, so it makes sense to focus on getting value for money - not the very cheapest deals - when you buy financial products. Remember that low-cost insurance policies, for instance, are unlikely to include perks such as the provision of a replacement hire car should your vehicle be damaged in an accident. In a tight spot, you might appreciate benefits like this even if they cost a little more. 

Which? experts have assessed car and home insurance policies based on the quality of the cover on offer as well as how much they will set you back, and have come up with a list of recommended providers of each. Read our home insurance and car insurance reviews for more information. 

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