Insurance comparison sites say that they give consumers the tools they need to find the best car insurance deals. They claim that they have created a more competitive marketplace as internet technology has enabled users to more easily compare multiple policies and premiums against each other. This, they say, has actually kept car insurance premiums down.

Detractors, on the other hand, point out that claims of comparing the whole market are misleading as not all insurers are represented on all comparison sites. They claim that some, if not most, of the comparison sites offer featured listings and special placements for those companies who buy advertising from them. In addition, they state, the premium comparisons are deceptive, and the criteria relies too heavily on “cheap rates” without taking into account good service and policy features. Finally, they claim, the increase in price comparison sites – most of which derive at least part of their income from referrals to the various insurers quoted – has added the cost of paying a middleman to the insurers’ cost of doing business. This added cost, of course, gets passed on to the consumer.

In fact, car insurance comparison sites can be a valuable tool for consumers who are looking for the best motor insurance deal – as long as you keep a few considerations in mind.

1. Not all car insurance companies are represented.
   In fact, Direct Line, one of the UK’s major insurer’s, deals only directly with the consumer, and many of the insurance lines owned by RBS don’t appear on any insurance company comparison sites other than Tesco Compare. To get the fullest comparison, you should get quotes direct from insurers, and make a point of getting quotes from major insurers separately if they’re not represented on the car insurance comparison site.
2. Check your assumptions.
   Or rather, check THEIR assumptions. Some sites, such as Moneysupermarket.com, make assumptions about your situation when generating their price quotes. If your situation doesn’t fit their assumption – say you’re the wrong age, or have had a scrape or two – the prices quoted will not be accurate.
3. Be aware that some sites put more emphasis on “sponsored listings”.
   Since the site is paid a commission on every policy sold through them, many will put an extra push behind those insurers that pay out the highest commissions. Be sure to read comparisons thoroughly to make sure that you’re getting the whole picture.
4. Know what you’re comparing.
   In order to get the best comparison, you need to compare like-with-like. It’s important to know that the policies being compared offer the same cover, or the comparison simply doesn’t make sense.