Price comparison sites: The disadvantages

Online comparison websites have become a very popular way of helping consumers compare the market for energy suppliers, insurance products and many other products. However there are disadvantages to using online price comparison sites.

Not all providers use comparison websites

Not all providers use price comparison websites and prefer to be contacted for competitive prices, e.g. Hughes insurance. This means that the consumer may be missing out on other competitive prices.

Not all price comparison sites cover Northern Ireland

The consumer may find that their time has been wasted when researching price comparison sites as their quotes/services do not always cover Northern Ireland. One example may be energy providers and a small number of insurance companies.

The cheap prices can be misleading

Sometimes the price comparison sites show a very cheap, competitive price that appears at the top of the page. However usually this is a price for basic cover, so by the time the customer has added all the additional charges needed to meet their needs, there may not be a saving at all.

Also, some energy suppliers may use off-peak tariffs to attract costumers and push their prices to the top of the list. However when peak costs are considered and included in the overall price, the agreed price on the comparison can increase dramatically.

Check out the CCEA GCSE Learning for Life and Work Second Edition Textbook to find out more or check out: My Revision Notes: CCEA GCSE Learning for Life and Work: Second Edition

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