Excess trick `used to keep quotes low`
Comparison websites use high voluntary excesses for motor insurance to keep quotes low, according to research group Defaqto.
The group has urged consumers to examine closely the deal they are offered by insurance aggregators, as they could face high costs if a claim is made.
Defaqto's general insurance analyst Mike Powell, who wrote the report Web Aggregators 2009, said: "Although most sites allow the user to change the voluntary excess to a level that is more acceptable before quotations are provided, it is an easily missed question.
"If an aggregator defaults to a voluntary £500 excess, quotations that are provided are based on this level of excess. If the customer chooses an insurance provider whose compulsory excesses are not clearly stated, they could find themselves with an excess of £600 or more when they need to claim. This clearly is not treating customers fairly."
The Defaqto report also claims that with so many comparison websites in the marketplace, consumers can easily be overwhelmed and confused about which to use, if any.
Defaqto said that with more than 70 insurance comparison websites in existence, a "crunch" is likely in the next two years as many businesses collapse after failing to attract enough customers.