Using comparison websites

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:

• Home loans

• Car loans

• Personal loans

• Credit cards

• Home insurance

• Car insurance

• Super funds

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.

While comparison sites can certainly assist you in assessing your options, it is important to seek advice to ensure the solutions are a good fit for your circumstances. If you’d like to discuss your options, please contact us on +61 3 9620 1642 .

Source:
Reproduced with the permission of ASIC’s MoneySmart Team. This article was originally published at https://moneysmart.gov.au/using-comparison-websites