When choosing a financial product such as insurance, a bank account, or an investment, you might see a “star rating”. Many people refer to these ratings to decide whether 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: 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, based entirely on the product’s 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: Compiled by analysts using detailed product data and criteria.
- Unbiased: Defaqto does not consider price, provider size, or commercial relationships.
- Feature-based: Ratings reflect benefits and functionality – not customer service or pricing.
- Updated annually: Full review every year, with updates for major product changes.
- Applicable across categories: Insurance, pensions, banking, 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, customer review ratings from platforms like Trustpilot or Reviews.io reflect the experiences and opinions of actual users. Customers leave a star rating and comment after using a service or product.
Key points about customer review ratings:
- Based on personal experience: Reflects service, ease of use, satisfaction, or support.
- Subjective: Influenced by individual expectations and experiences.
- Dynamic: Ratings can change rapidly with new feedback.
- Provider-focused: Reviews relate to service rather than technical product specs.
While customer reviews can highlight red flags like poor service or common frustrations, they may not reveal much about the actual quality or suitability of a product.
Why Both Ratings Matter
It’s easy to assume all star ratings are the same, but 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 Defaqto rating, meaning it offers a full suite of features, but mixed customer reviews if, for example, the provider’s customer service isn’t up to scratch. Equally, a product with glowing reviews might lack key features 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:
- ★ Basic product with few features and benefits
- ★★ Fewer than average features and benefits
- ★★★ Standard product with average features and benefits
- ★★★★ Good level of features and benefits
- ★★★★★ Excellent product with comprehensive 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 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 helps you make an informed decision.
| 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 https://www.defaqto.com/star-ratings
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