The number of Defaqto stars awarded to a product or service, such as discount car insurance, is reflective of its quality. More stars means better value for consumers, allowing them to make well informed decisions in regards to the financial products best suited to their particular needs.
Defaqto’s ratings process is an exhaustive one. 47 different benefits and features of comprehensive policies were assessed in order to assign them each a rating in order to offer a full picture of the level and range of benefits and features offered by each individual product, independent of price differences.
The direct car insurance’s commercial manager, Chris Hawkes, said that the new Defaqto rating was an excellent new tool in order to demonstrate the quality of its insurance products in a simple and reliable way. However, industry experts were quick to point out that there are so many different risk factors that come into effect when it comes to calculating premium prices, even two motorists with the same vehicle and who are of the same age can experience wildly different price quotes.
Many of these price differences can come down to simple geographical locations. Select regions in the UK are considered higher risk than others to insurers, which means that people living in certain postcodes can experience high premiums. In fact, some drivers that have moved from one postcode to another have experienced wild fluctuations in their premium pricing, even when the two postcodes are in close proximity to each other from a geographical point of view.