How Do Price Comparison Sites Make Money?

One of the most popular ways for motorists to source and arrange car insurance is to use the services of a price comparison website. Such a site may specialize in just providing motor insurance quotes from a number of providers or it may also offer quotes for other financial products such as home insurance.

Car insurance companies would usually remunerate the owner of a price comparison website if the consumer arranges cover through its website.

Price comparison websites are usually remunerated by the insurance company that arranges a policy for the consumer

So, what is in it for the owner of the price comparison website? Well, it almost certainly does not want to provide its service for nothing to every visitor to its website looking for one or more quotes for car insurance. Yes, there will no doubt be many consumers who visit such a website, obtain a number of car insurance quotes but end up arranging their cover elsewhere. In this case, the website owner would not be paid anything.

However, if the consumer decides to arrange their car insurance through the price comparison website then it will no doubt be paid by the insurance company for providing the introduction that leads to a sale. This may, for instance, be in the form of a set fee or it could be a percentage of the amount of the annual motor insurance premium.

Surely there is nothing wrong in that as the consumer has hopefully been able to arrange a competitively priced policy that incorporates all the benefits he or she requires. Of course, although many consumers are only interested in finding the cheapest cover he or she can, it should not just be about the price when deciding upon the company to arrange cover with. It is important that the insurer is providing the required level of cover. It is also important that the insurer has a good reputation in processing claims speedily and that it also provides a good level of service when contacted by the policyholder who has something to discuss about the policy such as if they wish to add someone to the car insurance policy as an additional driver.

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