UK consumers risk cover on lack of advice

85% of people in the UK are not aware of the long-standing Defaqto star rating. However, just under three quarters of consumers agree that a rating system is a good idea to help easily compare the level of features and benefits between different insurance products.  
 
The YouGov plc survey, commissioned by Paymentshield, showed that in current economic uncertainty, more people appear to base their purchase choice on quality rather than price.
 
However, even in the midst of this year’s Defaqto Star Ratings for personal finance products being released last week, consumers are still not aware of its relevance when buying.
 
James Watson, sales director at Paymentshield, said:

“It’s good to see that the majority of respondents agree that a quality product is more important than just opting for the cheapest option but it’s also worrying that most don’t know about Defaqto and how it can help when choosing a financial product.
 
“Only 28 per cent of people said that they have read the terms and condition of their insurance policies thoroughly which shows that despite the level of cover being important, most people don’t do a proper check to make sure they have the right product for their needs and expectations. Unfortunately, if you’re not properly aware what you’re covered for it could mean a difficult and upsetting process should you need to claim.”
 
The YouGov survey also showed that 53 per cent had never reviewed their finances with a broker or adviser.
 
Watson continues:

“Checking the Defaqto rating of your chosen product and reading the policy document carefully should go without saying. However, taking an overall look at your finances with an independent broker or adviser is the best way to get quality advice around the right product for your individual needs.”
 
David Cartwright, head of insight at Defaqto said:

“Defaqto Star Ratings provide a valuable and independent rating of the overall extent of the features and flexibility of key products. It is essential that people choose products with the right features to fulfil their needs.”