Created as a reaction to the insurance and ecommerce companies that have flourished beyond substantial control or scrutiny in recent decades, price comparison has become an important part of consumer experience in the UK.
With the public finding their time increasingly precious, these services allow consumers a quick and effective manner in which they can ensure that they are getting the best deal on a number of different products.
Primarily dealing with insurance cover – and, more specifically, used in regards to car insurance – sites such as CompareTheMarket.com and GoCompare are able to earn generate enormous revenues simply by taking a small commission fees on policies taken out by customers using their platforms.
In response to the growth of these platforms, there has been somewhat of a backlash – Admiral and Direct Line are among the companies who refuse to offer some or all of their products through price comparison sites. The argument against the platforms is generally that the fees taken in the form of commission are passed on to consumers – which inevitably pushes up the price of policies.
However, many insurers have benefitted from being listed on such sites, and have used these platforms in order to aggressively expand their operations. eCar are one such company – operating through a skeleton staff, engaging in minimal marketing and providing little in the way of customer service, they have been able to become a key player in the car cover market thanks to their prices often being among the lowest shown on price comparison sites.