Simon Read: Comparison sites deserve to be investigated

The City watchdog has launched an investigation into whether people are being duped into buying inappropriate insurance policies by the UK's growing number of price-comparison websites.

Some 14 sites will be investigated to find out whether the way they present information gets consumers the fairest deal.

Comparison sites have been a boon to consumers. They have helped millions get cheaper car and home cover and allowed them to shop around at the touch of a button, rather than having to contact several different insurers themselves.

But there is a major risk. It's this: if you simply choose the cheapest cover you could be inadequately insured. With many cut-price policies coming with several exclusions or high excesses (why else would they be so cheap?) buying them can prove to be a costly mistake if a claim is later turned down.

Any insurance you buy should be based on what you need, not what you're flogged. As for comparison sites? It's time they came with a large wealth warning.

s.read@independent.co.uk

Twitter: @simonnread