Industry acts to clear up confusion over which insurance to buy

New guidance has been introduced to make it easier for people buying insurance on price comparison websites to shop around for the best deal.

The move makes it easier for consumers to compare different policies by clearly displaying the total excess they will have to pay if they make a claim, and explaining if voluntary or compulsory excess is being levied.

Consumers can reduce the price of their insurance cover by opting for a higher voluntary excess, but in the past the level of excess payable was not always clear on quotations given by price comparison websites, meaning people were not always comparing like with like.

Under the guidance, developed by the Association of British Insurers, consumer group Which?, The British Insurance Brokers Association and several price comparison websites, any extras that are part of the premium will also have to be made clear, so customers can opt out if they wish. Consumers will also be warned to give accurate information or risk forfeiting claims.