New guide on insurance comparisons
Added on Wednesday, December 30th, 2009 by Carole Nash Editor | No Comments
New guide on insurance comparisons
Buying motorcycle insurance online is set to become easier and more transparent after new guidance was published by the Association of British Insurers (ABI) in association with consumer group ‘Which?’.
The ABI has drawn up the code to ensure that insurance products are accurately and transparently presented, allowing consumers to fairly compare policies on aspects other than price.
The plans come after it was feared that, as consumers tend to compare primarily on price, insurers were making a number of assumptions and increasing voluntary excesses that were not highlighted to the consumer in order to appear towards the top of the comparison table.
The voluntary code of practice will prevent this practice, making it easier for consumers looking to by car, home or bike insurance online, particularly when using price comparison websites.
Under the new scheme, the level of any voluntary or compulsory excess must also be prominently displayed and clearly explained, while it should also be made clear what level of cover is provided as standard, and what policy features are being sold as add-ons. Any specific exclusions to the policy should also be detailed clearly before purchase.
If companies cannot offer a quote to consumers, they should direct them to an alternative provider, such as a specialist insurer.
Nick Starling, the ABI’s director of general insurance and health, says: “Using the internet can enable consumers to get the best policy at the most competitive price.
“But the ease and speed of going online must be balanced with ensuring that people understand the terms, conditions and cover of the policies they are comparing.
“These guidelines will help ensure that customers get the best possible deal when buying general insurance products online, and we urge all online insurance providers to adopt them without delay.”
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