The results of Defaqto's survey reveal that:
- 93% of people compare the features of different products
- Further, 89% compare the level of features between different products
- However, 47% don't always know what product features mean
Defaqto completed similar surveys in 2010 and 2011 with the findings remaining static over this period.
Rather than simply basing decisions on price, Defaqto believes that consumers need to take more notice of the huge variation between financial products in terms of the range and level of features, benefits or cover that they offer.
Although price will always play a role in consumers' decision making, particularly in the current economic climate, it is also important for consumers to carefully consider whether the features and benefits of the product they're considering meets their actual needs and circumstances.
Defaqto's Star Ratings aim to help people understand where a product sits in the market, based on the features and benefits it offers. They provide an independent assessment of all products across more than 40 different product types including:
- Credit cards
- Current accounts
- General insurance - including home, motor, mobile phone, wedding, pet and travel insurance
- Investments
- Critical illness, income protection and private medical insurance
- SIPPs, insurance bonds and offshore insurance bonds
Taking a wide range of features and benefits into account, Defaqto has given each product a rating from 1 to 5 depending on how comprehensive they are.
David Cartwright, Defaqto's Head of Insight, said:
"Whether you are insuring your home or your car, buying a protection product for you and your family, it is essential that you take time to consider whether the features and benefits that you require are actually provided by the product you choose. There is such a wide variation in what's available that it's understandable that many consumers are sometimes confused by what's on offer.
"We've developed our range of Star Ratings as an independent and unbiased yardstick to help consumers gauge where products sit in the market in terms of the comprehensiveness of what they offer. The key is for people to look for the right level of product for their particular circumstances."
Defaqto's Star Ratings website enables consumers to:
- Find 1, 2, 3, 4 or 5 Star Rated products and compare their features and benefits with each other
- Identify which Star Rating their current product has, so they can judge whether it is the right level of product for their requirements
