Online comparator JustEzi has been forced to remove a car insurance comparison tool after the Australian Securities and Investments Commission (ASIC) found it “potentially misleading”. 

The Ezi-Estimates tool formulated prices based on five details entered by consumers, ranking insurers from lowest to highest.

But the estimates were not based on insurers’ data. They came from a formula created by the website operator and ASIC says they were “significantly different to quotes offered by the relevant insurers”.

“Further, on many occasions, the price rankings placed on the relevant insurers were inaccurate.”

“We have been targeting this area of the market to ensure… comparison websites are providing accurate information and not misleading consumers,” ASIC Deputy Chairman Peter Kell said.

“Comparison websites can be very useful for consumers and can stimulate competition, but these outcomes will only occur if the information is accurate,” Mr Kell said. 

ASIC has acknowledged JustEzi’s “constructive approach” to the matter.