Price Comparison Websites Becoming More Pointless
Thursday, November 5, 2009 11:37We’ve all seen the adverts, whether it’s an opera singer dancing around a coffee shop, or just Peter Jones walking around a multi-storey supermarket, the adverts for price comparison websites just get worse and worse (apart from Compare The Market advert with the meerkats).
We first saw price comparison sites coming to the TV a couple of years ago, back then they only really dealed with car insurance. However, now that more of these sites are appearing and they’ve discovered how lazy the common UK citizen is, these sites have branched out to everything from credit cards to small business insurance.
Obviously these sites do save you some time when you are trying to find anything and everything, from credit cards to salon insurance, as you can avoid filling out the same form dozens of times for different sites, but are these comparison sites really required? After you’ve completed the form, you get a nice long list of companies that will offer you the desired service at a cheap price, however, generally, the majority of this list is browsed over by the user because they’ve never heard of the companies. I wouldn’t be surprised if some of these companies were owned by the price comparison site’s themselves.
After you’ve chosen which deal you think is saving you the most money, you can then buy it via the comparison site, but, how can you tell you’re getting the best possible deal? You’ll find a number of insurance companies advertising on TV, such as Direct Line, that aren’t listing themselves on price comparison sites.
You may think that it’s stupid for those companies to avoid comparison sites, what are they gaining by not. However, due to the price comparison sites charging the companies a commission, Direct Line don’t have to pay this, meaning they can pass more savings onto you as the customer.
This now means that to really find out if you’re getting the best deals for, as an example, office insurance, you have to use the price comparison sites, plus the companies that aren’t listed on the comparison websites. This will result in you filling out a number of forms, which is what the comparison sites are trying to avoid. So when it drills down to it, their TV adverts aren’t needed any more than the site’s themselves.






