Are comparison websites misleading?

[Steve]

Do you think comparison websites are misleading?

I heard that insurers do not make much money if any from comparison site sales and its all about the second year renewal. Have you ever found that the second year renewal from insurance companies you purchased via comparison sites more expensive? And when you get another fresh quote from comparison website thats it’s much cheaper than the renewal?

http://www.dailymail.co.uk/news/article-2035330/Are-comparison-websites-misleading-Trading-probe-launched-relationship-motor-insurers.html

[afterburner]

I find this is true of insurance companies in general, not just those who are on the comparison sites. They have 'introductory' offers which they use to lower the first year premium, and then they jack the renewel up in the second year in the hope that people won't notice/can't be bothered to do anything about it.

I'm with a company who aren't on comparison sites and are notorious for doing this (think red phone on wheels). For example I took out house/contents insurance, and for the first year it was £160. The second year renewal came in at £480 :o . When I did a quote for a new policy on website of the same company, the same policy was £180. And when I rung up to cancel my renewal, they couldn't understand why.

There's zero loyalty for existing customers in the insurance game!

[Redsteve]

I find this is true of insurance companies in general, not just those who are on the comparison sites. They have 'introductory' offers which they use to lower the first year premium, and then they jack the renewel up in the second year in the hope that people won't notice/can't be bothered to do anything about it.

I'm with a company who aren't on comparison sites and are notorious for doing this (think red phone on wheels). For example I took out house/contents insurance, and for the first year it was £160. The second year renewal came in at £480 :o . When I did a quote for a new policy on website of the same company, the same policy was £180. And when I rung up to cancel my renewal, they couldn't understand why.

There's zero loyalty for existing customers in the insurance game!

I know this is fairly common but it is not always the case.

I have bought my insurance through Adrian Flux for the last 3 years as they have been either the cheapest, or within £20 of the cheapest quotes I could find. I have just received my renewal for this year and again they are the cheapest. I don't think it is worth all the hassle of changing company and having to chase the proof of NCB for the sake of £20 a year.

Having said all that, it does pay to shop around, my wife was quoted £600 to insure a Ford Ka with Adrian Flux but pays £230 to Swinton (she has no NCB).

Steve.