Well said Michael Lloyd of the AA!
Sites that simply compare on price will always drive the wrong behaviours in price versus cover. In 1997 I led an initiative in Commercial Lines insurance which attempted to compare on the basis of cover as well as price.
The most difficult problem I had was with the panel of insurers agreeing how to do the comparison.
In the meantime another initiative based solely on price beat us to market and stole market share.
A new AA-Populus study of more than 16,000 drivers found that 50% of respondents were not aware that purchasing a cheap policy from a comparison website could mean a lack of benefits such as windscreen cover or a courtesy car. “Benefits are cut from policies in a process known as ‘hollowing out’ in order to reach the lowest possible price and thus increase the likelihood of a sale, while high excesses are also often applied to help reduce the quoted premium and this is not a good outcome for customers,” explained Michael Lloyd, the AA’s director of insurance.