Do we over-use price comparison sites in the UK?

In our latest review of this issue, price comparison v direct car insurance, we set out how to use price comparison sites safely to find car insurance online. And, if people were to use these comparison services appropriately, then they could indeed find the right cover as opposed to buying too cheaply for their needs.

However, BIBA data has shown that most drivers tend to reduce their cover when they buy car insurance via a price comparison site and they have pointed out the financial risks of doing this.

When used to match policy needs rather than to buy as cheaply as possible, price comparison sites are a good way to find car insurance for anyone. However, they are of greatest benefit to those that really need to cut the cost of their cover by as much as possible such as the young or convicted driver that will otherwise face a sky high premium.

For those run-of-the-mill drivers that are low risk to insure - that's most of us - there is no need to seek out the more no frills policies and therefore going direct where reliable cover, competitively priced, is easily obtained, makes sense.

In our view the over 25 with a clean license and no recent claims should certainly check out a few brands directly to find cheap car insurance rather than relying on a price comparison system that can be a cumbersome way to find the kind of reliable cover more easily available direct.