When choosing a financial product such as insurance, a bank account, or an investment you might see a “Star Rating”. A lot of people refer to these ratings to see if they trust a product, and if they should go ahead with their purchase.

This is usually out of 5 – but what exactly does that mean?

It’s important to understand that not all Star Ratings are the same. Knowing the difference between an ‘Expert Rating’, like a Defaqto Rating and a ‘Customer Review Score’ like ‘Trustpilot’ or ‘Reviews.io’ can help you make a more informed choice.

In this blog, we’ll explain to you: What is the Difference Between Defaqto Star Ratings and Customer Review Ratings?

What Are Defaqto Star Ratings?

Defaqto Star Ratings are independently assessed ratings of financial products like insurance, which are based entirely on the products features and benefits. Defaqto is an independent UK based financial information business with over 30 years of experience analysing the market.

It maintains the largest financial product database in the UK and uses a structured, transparent methodology to evaluate thousands of products every year.

Defaqto Star Ratings are awarded on a scale of 1 to 5 Stars, with 5 Stars representing an excellent product that offers a comprehensive range of high-quality features.

Key points about Defaqto Star Ratings:

• Expert-driven: The ratings are compiled by analysts using detailed product data and criteria.
• Unbiased: Defaqto does not consider price, provider size, or commercial relationships in its ratings.
• Feature based: Ratings reflect what a product offers in terms of benefits and functionality – not customer service or pricing.
• Updated annually: All ratings undergo a full review every year (with updates throughout the year for major product changes).
• Applicable across categories: From insurance to pensions and banking to investments.

In short, a Defaqto Star Rating gives you a reliable indication of how well a financial product is constructed, based on what it includes, not what someone thought about using it.

What Are Customer Review Ratings?

On the other side of the spectrum, you have Customer Review Ratings from platforms such as Trustpilot or Reviews.io. These scores reflect the experiences and opinions of actual users. Customers are invited to leave a star rating and comment after using a service or product.

Key points about Customer Review Ratings:

• Based on personal experience: They reflect how customers felt about service, ease of use, satisfaction, or support.
• Subjective: Reviews are influenced by individual expectations and specific experiences.
• Dynamic: Ratings can change rapidly based on new feedback.
• Provider focused: Most reviews relate to the company’s service rather than the product’s technical specification.

While customer reviews can highlight red flags such as poor service or common frustrations, they may not reveal much about the actual quality or suitability of a product for your needs.

Why Both Ratings Matter

It’s easy to assume that all star ratings are the same, but when it comes to financial products, Defaqto and customer review sites serve very different purposes. Defaqto tells you what a product includes and how comprehensive it is whereas Customer Reviews tell you how people felt about using the product or service.

A product could have a 5 Star Rating from Defaqto, meaning it offers a full suite of features, but it might have mixed customer reviews if, for example, the provider’s customer service isn’t up to scratch. Equally, a product with glowing reviews might still be lacking key features that are important to you, and that’s something Defaqto can highlight.

How Are Defaqto Ratings Calculated?

Defaqto uses a proprietary research methodology based on expert input, customer appeal studies, and feedback from product providers. This ensures that only features that matter to consumers are considered.

Products are assessed against a Core Criteria:

★ A basic product offering only a few features and benefits

★★ A product offering fewer than average features and benefits

★★★ A standard product providing an average level of features and benefits

★★★★ A product with a good level of features and benefits

★★★★★ An excellent product with a comprehensive range of features and benefits

Unlike some rating systems, Defaqto does not cap the number of products that can receive high ratings. If multiple products meet the standards for 5 Stars, they all receive it.

Crucially, Defaqto maintains editorial independence, ensuring their ratings remain free from commercial influence.

Which One Should You Trust?

You don’t need to choose between Defaqto and Customer Review sites – using both together can help you make an informed decision on purchasing a policy.

Feature	Defaqto Star Ratings	Customer Review Ratings (e.g. Trustpilot)
Based on	Product features and benefits	Personal experience and satisfaction
Who rates it	Independent experts	Customers
Objective or subjective	Objective	Subjective
Covers	Product design and comprehensiveness	Service quality, user experience
Updated	Annually (plus in-year changes)	Continuously as reviews are posted
Focus	What the product offers	How the customer felt

Choosing a financial product is a big decision. While customer reviews can highlight important service issues, only expert analysis like Defaqto Star Ratings can give you a reliable and consistent picture of what’s actually included in the product. They’re especially useful for comparing similar products side by side, ensuring you’re not missing essential cover or features that you require.

When you see a Defaqto Star Rating on a financial product, you can be confident that it’s been independently assessed by experts, giving you one more reason to trust your decision.

For more information, visit www.defaqto.com/star-ratings

Did you know GoSkippy’s Comprehensive Car Insurance products are 5* Defaqto Rated except for our Essentials Tier which is our stripped back product to get you on the road for less.

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