Insurance comparison websites need to do more, FSA warns

Thu, 13 Nov 2008

Car insurance comparison websites have improved, but more needs to be done, according to the Financial Services Authority (FSA).

The body conducted a study of 17 insurance websites some time ago and in a follow up found that many of them had made improvements since then.

However, it stated that some firms need to make progress in two areas, namely the information they get from car insurance firms relating to the level of excess on a policy and the assumptions they make about consumers needs and circumstances when supplying a quote .

Dan Waters, the FSA's director of retails policy and conduct risk, said: "We are pleased that firms have made improvements in the information they provide. But it is imperative that all comparison websites provide clear information so that consumers can make informed decisions."

People should shop around for car insurance, but they should consider what protection is offered by the policy and not just the price, he added.

Earlier this week, Moneysupermarket.com warned that people who are caught drinking and driving face an increase of up to 81 per cent in the cost of their car insurance premium .
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