Defaqto – what does it all mean?

QUOTE ME

We believe that the quality and value of ALA policies speak for themselves, not to mention the overwhelmingly positive feedback we receive from our customers.

Consumers rely increasingly on companies like Which? for guidance when purchasing financial products. With an average of 6500 customers per month searching for Defaqto people are ever more reassured by this kind of objective, independent source. It also simplifies what can feel like a daunting and complicated process.

ALA is recommended by companies such as Auto Trader, Honest John, PistonHeads and What Car?. We aim to deliver the highest level of service to all of customers, as demonstrated by our TrustPilot score of 9.7 out of 10.

However, as Simon England, Managing Director of ALA points out that “the level of customer service provided by a company is not something that Defaqto examines and could leave customers open to poor service and delays in the event they need to make a claim”.

Whilst companies like Defaqto provide a helpful starting point, it is only one aspect to consider when buying insurance and other financial products.

We do feature Defaqto on our site to help potential customers quickly and easily see that our products have been independently assessed and given a 5 Star Rating but stress that this should always be looked at alongside reviews and recommendations.

Read on to see our guide to Defaqto.


Who are Defaqto?

Defaqto is a leading independent financial research company in the UK focused on supporting better financial decision making.

Defaqto take impartiality seriously; they do not knowingly exclude a product, are free of any affiliation with any third parties and rate products with a 100% independent methodology.


What is a Defaqto Star Rating?

Star Ratings indicate where a Motor GAP Insurance product sits in the market in terms of the features and benefits it offers.

The higher the Star Rating, the more comprehensive a product will be. Products rated 1 Star are a basic product, with a low level of features and benefits, while 5 Star products provide the highest level of cover with a comprehensive range of features and benefits and must meet additional minimum criteria in certain areas.

Defaqto Star Ratings are calculated using a scoring system called Data Numerical Analysis, or DNA. They assess between 40 and 100 features and benefits for each product or insurance policy, with each scored from 1 to 5.

The scores for each product are then totalled and all products ranked. Their industry experts determine the scores necessary to achieve 1, 2, 3, 4- and 5-Star Ratings.

The criteria used to determine Star Ratings are based on Defaqto’s views of which features are likely to be important in helping consumers decide which products they need.


What does a 5 Star Rating mean?

Defaqto define a product which has been awarded 5 Stars as “an excellent product with a comprehensive range of features and benefits”.

Compare this to a 4 Star product – “a product with a good level of features and benefits” and 3 Stars – “a standard product providing an average level of features and benefits” and the choice is clear – why settle for less?


How does a GAP product achieve a 5 Star Rating?

The following features are the main criteria Defaqto use to judge the Star Rating of a product.

These are all features of our ALA Back to Invoice Plus, Vehicle Replacement + and Contract Hire + GAP policies, which have been awarded a 5 Star Rating:

  • Foreign Use: Unlimited
  • Factory Fitted Options: Unlimited
  • Claims Basis: Insurer settlement
  • Maximum Claims Limit: £50,000
  • Motor Policy Excess: £250
  • Transfer Replacement Vehicle: Yes
  • Claims Notification: 120 days
  • Cancellation Return – Insured: Daily pro-rata

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