When you’re comparing things like insurance, credit cards and home loans, comparison websites can be helpful. But they have limitations and may not cover all your options.
What to keep in mind
They make money
Comparison websites are businesses. They make money in different ways, for example:
from sponsored links
by showing sponsored links before non-sponsored links
from commissions paid by providers
What they base comparisons on
Ratings and rankings on comparison websites are not always clearly explained. Find out what they’re based on, and compare them with ratings and rankings on other comparison sites.
Which products and features they cover
Most comparison sites don’t cover everything that’s available. They usually only cover certain providers and certain products.
While price is one feature to compare, it’s not always the most important. Check if the website is comparing all the features that are important to you.
Know what to compare
Before using a comparison website, work out what you want to compare. For example, fees, interest rates or other features.
For tips on the different features to compare, see:
Once you know what you want to compare, check different comparison websites and providers’ websites.
Make a short list and compare the top one or two results by reading the product disclosure statement (PDS). The PDS explains all the features and fees in detail.
When you’ve decided, contact the provider. Ask them as many questions as you need to, until you feel ready to commit.
For more help comparing your options, contact us on (02) 8277 4605.
Reproduced with the permission of ASIC’s MoneySmart Team. This article was originally published at https://moneysmart.gov.au/using-comparison-websites
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