Price comparison sites
There are an abundance of price comparison websites advertised on national television these days. Most have spent fortunes on marketing gimmicks to make us remember them, and then use them. From “catchy” theme tunes to the use of “cute” animals. Price comparison is just something we can’t get away from, but what is it, and how does it benefit you?
How do Price Comparison Sites Work?
The vast majority of major financial institutions, from banks and building societies to insurance companies and utility providers, have an advertising budget. Some of this budget is set aside for online marketing, meaning that the host website (in this case a price comparison site) receives a payment or commission when you make a purchase through their links.
Whatever product you are comparing, the price comparison site will present you with a list of quotes based on the information you have provided. This can be arranged in order of importance to you, which would normally be price. By clicking on the quote you are interested in, you are setting tracking in motion that means the company can pay the price comparison site if you complete a purchase.
Most of the price comparison sites have hundreds of providers to draw on, and they have a technical feed which gives them the quotes, often within seconds of you submitting your details.
The process, therefore, makes the price comparison site money, and saves you a lot of time in ringing around different product providers.
Does Price Comparison Save Money?
Doing a quick survey around the Prudent Minds office, there is no doubt that most have a good story to tell about price comparison. There doesn’t seem to be a favourite price comparison site to use, most of use having used a different, though equally well known, site. What is clear is that there is money to be saved by using price comparison websites, and some of us have saved as much as £22 a month (£264 a year) on things like car insurance – which is substantial.
However, what is also clear, is that we then have loyalty to that price comparison site, or in a lot of cases, to the company we then get our insurance, loan or utility from. It would seem that this is because we assume that because they were so cheap last time, they will always be.
In order to continue to benefit from these savings, price comparison sites need to be used annually. Why save money one year, and then not go on to save more money the next year? For most, its so easy to just accept the new car insurance, house insurance etc. quote rather than take the trouble to search for a new quote. But given that it only takes around 15 minutes and it could save hundreds of pounds, it really needs making a priority.
Who doesn’t advertise on Price Comparison Sites?
There are an increasing number of very big companies who do not advertise on price comparison websites. They are more than happy to advertise this fact, and argue that the money they are saving, is passed on to you.
In order to find out whether this was the case, Prudent Minds did some research and got quotes from both price comparison sites and direct with those who don’t advertise on price comparison. Read our VERY interesting report here.
What can be bought through Price Comparison?
Most people are well aware that Car Insurance and Home Insurance can be compared for prices, but there are many other financial products whose quotes can be compared. There are many different types of insurance that can be quoted on, such as health insurance, landlord insurance, gadget insurance and many more.
Click on the link for a full list of insurance types which can be compared.
As well as insurance, most would guess that you can compare loans and mortgages, but perhaps would not know that you can compare quotes on things such as travel, utilities and banking. Some price comparison sites even offer shopping comparisons by asking what you are looking to buy and providing you with a list of where that product is available, and at what price.
Find out what other products can be compared.