What is Defaqto? - Ratings Explained

5 stars with yellow background

If you’ve ever bought an insurance policy, you might have seen that it was given a Defaqto star rating between 1 and 5 – but what does this really mean? What is Defaqto and how do they rate financial products like banks and insurance?

Find out all you need to know in this complete guide to Defaqto ratings.

What is Defaqto?

Defaqto was founded in 1993, providing independent financial information to both consumers and financial institutions.

Most commonly known for Defaqto ratings, the company also offers data services, publications, software and runs a range of events.

Experts at Defaqto spend hours-on-end regularly researching more than 43,000 financial products and services on the market, updating their reliable reviews as they go.

What products and services do Defaqto rate?

With extensive information on more than 43,000 products and services, the list of individual financial providers rated by Defaqto is endless.

Some of the industries assessed by Defaqto include:

  • Car insurance
  • Home Insurance
  • Travel Insurance
  • Life Insurance
  • Credit Cards
  • Banks
  • Financial Advisors
  • Comparison Websites
  • Insurance Brokers

READ MORE: The Best Car Insurance Comparison Sites – Rated

How can Defaqto help me choose an insurance policy?

Whenever you buy an insurance product through a price comparison website like Confused.com or Compare The Market, each and every product will be given a ‘Defaqto star rating’ between 1 and 5.

This rating is designed to help consumers make better informed decisions when buying cover which they might not know a lot about – after all, not everybody is expected to be an expert in life, travel, home and car insurance policies.

Because Defaqto is an entirely independent organisation, customers can rest assured that the ratings are honest, unbiased and provided by experts who really know what they’re talking about.

How does Defaqto earn money?

Defaqto makes money by licensing its ratings for companies to use in their promotional material. The exchanges are purely business-to-business and Defaqto do not make any money from customers.

How does Defaqto rate financial products and services?

Defaqto ratings are updated every single year on February 1st, with a team of 60 experts putting a collective 400 hours every single day into assessing thousands of products. Based on figures on its website, the Defaqto database is complete with more than 4.5 million product features which are continuingly adjusted.

Defaqto ratings do not take price or customer service into consideration – instead, they focus on market developments, consumer research and in-depth discussions with industry professionals.

Each individual product is split into various independent categories, each of which is rated between 1 and 5 based on quality – the final rating is determined by a combination of these ratings, while there are also some features which are defined as ‘core criteria’ and have a more profound effect on the company’s overall rating.

READ MORE: The Best Life Insurance with Free Gift Deals

What does a 5-star Defaqto rating look like?

While the exact ingredients for a 5-star Defaqto rating has never been revealed, there are a few telling differences between a 4- and 5-star policy.

For example, a Defaqto 5-star car insurance policy typically offers a wider range of features, such as stereo cover and windscreen repair alongside its core offering, while a Defaqto 5-star life insurance policy might offer additional Critical Illness Cover if you suffer a severe illness but do not die.

A Defaqto  5-Star home insurance policy might be based on the fact that it includes extra features like lock replacement and legal protection cover, while Defaqto travel insurance could be given a 5-star rating for its extensive cancellation cover or protection against a missed pre-booked flight.

What do Defaqto star ratings mean?

When a Defaqto rating is provided, customers are urged to look for those rated 4-star or above.

1-Star Defaqto Rating – the product/service is of low quality and offers little.

2-Star Defaqto Rating – the product/service is of below average quality and offers only basic features.

3-Star Defaqto Rating – the product/service is of average quality, offering some good features.

4-Star Defaqto Rating – the product/service is of good quality with a small offering of premium features.

5-Star Defaqto Rating – the product/service is a market-leader, offering an extensive range of premium features.

Get Defaqto 5-Star insurance with Bobatoo

Whether you’re looking for car, home, travel or life insurance, we can guarantee you Defaqto 5-Star rated cover at an affordable price right here at Bobatoo.

We work with a range of 5-Star Defaqto rated insurance providers, ensuring that customers always receive the optimum level of cover.

Click below to find out more about Bobatoo’s insurance products below: