Consumers compare but do not comprehend

The results of the survey revealed that 93% of people compared the features of different products however 47% did not always know what the product features meant.

Rather than simply basing decisions on price, Defaqto believes that consumers need to take more notice of the huge variation between financial products in terms of the range and level of features, benefits or cover that they offer.

David Cartwright, head of insight at Defaqto, said: “Whether you are insuring your home or your car, buying a protection product for you and your family, it is essential that you take time to consider whether the features and benefits that you require are actually provided by the product you choose.

“There is such a wide variation in what’s available that it’s understandable that many consumers are sometimes confused by what’s on offer.

“We’ve developed our range of Star Ratings as an independent and unbiased yardstick to help consumers gauge where products sit in the market in terms of the comprehensiveness of what they offer. The key is for people to look for the right level of product for their particular circumstances.”