If you’re the type to compare the market before purchasing things like insurance, it might be handy to know there are a many number of risks you’re taking, particularly when it comes to comparator websites. It may seem like the budgeting shopper’s dream to be able to line up and compare different products in one sitting, however the risks lie in that you don’t have a professional sitting there with you to explain the different policies and meanings. Just recently, the ACCC released industry and consumer guides on the operation and use of comparator websites, as it was found many sites were providing misleading information. It might be worth taking a look at the guidelines, but before you do, why not have a look at our break down of the insurance risks associated with comparator websites below.
Have you underinsured yourself?
Should you use a comparator website to take out insurance without the guided advice of a professional, there is a good chance you could underinsure yourself. This could be potentially devastating with regards to home insurance, life insurance, travel insurance, and all types of business insurance. As the stakes are high, if your cover falls short of what your actual replacement value is worth, you could be up for a nasty shock should you need to make a claim in the future. Obtaining professional advice on the other hand means your broker can cover all bases and create a checklist of everything you should be covered for, where as comparator websites cannot always do this.
Have you over-insured yourself?
Though not as worrisome as the above point, over-insuring yourself means you pay higher premiums and therefore have a reduced cash flow. This is not an ideal situation! It’s always important to get a professional’s advice when it comes to insurance, to keep your valuations up-to-date and accurate. Don’t pay for more than what you need and waste your money.
Do you understand the policy exclusions and limitations?
By selecting your insurance policy from a comparison website, you may not be made fully aware of any exclusions and limitations on the policy, or even understand them fully for that matter. From things like what kind of disaster your home is covered for, to detail around pre-existing health conditions for life insurance, it can pay to get your broker to explain everything and ensure you know exactly what you’re insured or not insured for.
To help ensure you aren’t at risk by comparing and selecting your own insurance, make sure you meet with a professional broker and call Elliott Insurance Brokers today on 1300 635 315 to speak to one of our experienced brokers in Perth.
