Consumers need to understand the risks of buying cover based on price rather than quality, said specialist general insurance provider Assurant Intermediary.
Kevin Paterson, Assurant sales and marketing director, said: “Price comparison websites have captured the imagination of consumers. The danger is that insurers in every sector will follow the trend of the motor market and focus on promoting price rather than cover.”
Consumers want to get the best deal possible – but the danger is many will leave themselves with poor quality cover if they make their purchase decision on price alone.
“How many could afford to make up a shortfall in cover if their home was seriously damaged by flood or fire? What about loss of possessions? As everyone tightens their belts, trying to save a few pounds on home insurance could prove to be a false economy,” he said.
He added: “Not all clients will be able to afford gold-plated cover, but with the right advice from someone that can explain what’s on offer, they can get the best cover that suits their budget.”
