Alexander Forbes Identifies Dangers of Insurance Price Comparison

Alexander Forbes Insurance warns about price comparisons They say this may disguise the complex process of investigation.

Gari Dombo, the Managing Director of Alexander Forbes Insurance, warned consumers that they not fall into the trap of making important insurance decisions based solely on instant price comparison programs.

Dombo said that relying on this process only may leave consumers with the wrong kind of information. He stressed that it should not be the price of the insurance policy that determines its purchase, but what it covers in the long run.

Dombo said that while internet price comparison in the insurance industry is easy and convenient, it "disguises what should be a more complex process of investigation and broader comparison."

Alexander Forbes has compiled a list of essential questions for consumers to ask before they purchase insurance, no matter which way.

For example, Dombo warns consumers that the small print is very important to find out what is (and what is not) covered by the policy.

"The exclusion detail is very important to read as policies can be very different," he said.

Other things to determine include who is covered and who is not in the policy. This is especially important when taking out car insurance.

Consumers should also ask what their motor insurance covers and what the car is insured for. Different categories include retail value, market value, or a combination of both.

Dombo commented: "These all have very different cost and payout implications and purchasers of insurance should understand what they are buying."

"Only once you have used these questions to thoroughly establish that the cover suits your needs should you look at price," said Dombo. "Paying a great premium for a policy that does not respond when you have a loss misses the point of insurance."