Whether you’re looking for a loan, insurance, or the best price on a holiday, these days there are many price comparison sites out there claiming that they can find you the best deal for whatever it is you’re looking for. Here in the UK, it seems that these sites are booming, they are advertising SO much, especially during the normal daytime TV. What I’m asking, is are they worth it? Well, believe it or not, I’ve been involved with creating such sites, I even used to work with the guy who created the popular site Kelkoo, and I know a thing or two about how they work.
I guess the first point I’d like to raise is that these comparison sites do save time. Especially when searching for something that usually involves asking a lot of questions, for example when applying for a loan. When applying for a loan, you would usually have to answer a large number of questions such as why you are applying for a loan, what your annual earnings are etc. When using a comparison site, you just have to answer these questions once, and they will go out there to all of the loan companies with your criteria and try to find you the best deal.
So yes, sure, these sites save you time - but I want you to remember one thing. These comparison sites are there to make money. They are not charging you, the user, direct… but they are charging the loan companies. If the comparison site is earning a high commission for a particular loan company, the more they will pimp that company. This can sometimes result in misleading the customer (you) into thinking that you are getting the best deal, when actual fact you are probably just being encouraged to purchase from the company that is paying the highest commission to the comparison site.
This doesn’t mean that you shouldn’t use comparison sites, far from it. Just be aware that you are not always being presented with the best deal with these guys. What I do, is use the comparison sites to get an online quote… then call up the companies direct with the quote references.
Try to get a better deal, play them off against eachother. Try not to fall for the extras either (for e.g. loan protection). I’m not saying refuse loan protection - that is of course up to you…. but just be aware that these loan protection deals can be quite expensive, and refusing them can greatly reduce your quote. Very often, the sales guys that you speak to on the phone are paid in commission based on if they can sell the loan insurance or not - so be aware of that.
I realise that this article has leaned more towards the loan example, but remember this general rule applies to all products purchased via price comparison sites. Good luck in finding the best deal for you!
