If you’re a single mum on social media, you may have seen paid ads for comparison websites specifically targeting single mothers. If you’re a single mum, they declare, you could be saving big bucks by comparing energy plans, insurance plans etc. It seems that a couple of the big comparison sites have the single mother demographic in their sights. Should you be sceptical?
We would recommend being cautiously aware, not just with comparison platforms but any advertising zoning in on single mums. Know the facts and know what questions to ask. This week, we’ve done the legwork for you.
What are comparison websites?
We’re constantly encouraged to call our bank, switch insurers, or argue for a better energy deal. In reality, for many single mothers, that advice feels unrealistic. Between work, kids, and everything else life throws at us, who has the spare hours to shop around, or the energy to negotiate on the phone? And for some, the idea of bargaining simply feels uncomfortable.
That’s where comparison websites step in. They promise a shortcut: enter a few details and instantly see a range of options side by side. Convenient, simple, and seemingly stress-free.
But as comparison sites multiply, it raises some important questions. Which sites actually compare the widest range of providers? Are some deals pushed more than others? And how independent are these platforms, really?
We’ve taken a closer look to help single mothers use comparison websites with confidence—and hopefully keep more money in their pockets.
How comparison websites actually make money
Most well-known comparison platforms, such as iSelect or Compare the Market, earn their income through commissions paid by insurers or service providers. Typically, this is calculated as a percentage of the premium you sign up for. Others operate on a “pay-per-click” model, meaning providers pay whenever a user clicks through to their policy.
It’s also worth knowing that some comparison tools are government-run and don’t operate for profit. Examples include the federal government’s private health insurance site (privatehealth.gov.au) and Victoria’s energy comparison service (compare.energy.vic.gov.au).
Is this something to be concerned about?
Comparison websites insist that commissions don’t affect which policies are shown or how they’re ranked. You may have seen Compare the Market’s slogan: “The insurer pays commission, you pay nothing.”
However, investigations by CHOICE suggest it’s not always that simple. Their research found that phone-based consultants can be rewarded based on performance. So if you’re deciding between a cheaper policy and a more expensive one, it’s worth remembering that the consultant may receive a higher bonus if you choose the pricier option.
Also expect follow-up contact. Using a comparison site often triggers calls or emails suggesting you review additional products. While this can be irritating, you are entitled to opt out of marketing messages.
Do comparison sites really cover the whole market?
One of the most common criticisms is that comparison websites don’t include every provider. That means a better deal might exist outside their network.
CHOICE has analysed the major comparison sites and published data on how much of the market each one actually covers. For example, their findings show that iSelect compares only a portion of available products—such as 11 out of 37 health funds, six life insurers, one home insurer, eight car insurance providers, and three travel insurance options.
This doesn’t make comparison sites useless, but it does mean they shouldn’t be your only source of information.
Getting the best results from comparison websites
Single mothers can use comparison tools more effectively by keeping a few strategies in mind:
- Be clear about what matters to you. Don’t just compare prices—decide which features are important. For energy plans, this might include billing cycles, late-payment grace periods, renewable energy options, or extra fees.
- Use more than one comparison site. Checking two or three platforms can widen the net and reveal providers one site alone may miss.
- Make sure you’re comparing apples with apples. Insurance policies and energy plans can vary significantly, so double-check inclusions, exclusions, and conditions before deciding.
A quick warning about scams
No discussion of online tools would be complete without mentioning scammers. Always double-check that you’re on the correct website before entering personal information. A quick glance at the URL can help—legitimate sites will usually have clean, familiar addresses (for example, iselect.com.au), while fake versions may include extra letters or incorrect country codes.
Finally, remember this rule of thumb: genuine comparison websites will never ask for your bank account or credit card details upfront.
More advice from the single mothers brains trust
Right now, money-saving tips and conversations are happening on CSMC’s member-only Facebook group, Single Mothers Stronger Together. If you’re not in the group, we’re ready to welcome you. You have to be a member of CSMC to join the group, so if you’re not already a member, join today – it’s FREE for single mothers!
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