Insurance Renewals

[Dave2002]

I received details of our house and contents renewal a few weeks ago. As I was concerned about the cover I phoned up the company this morning. I also pointed out that the suggested new premium was over 22% higher than last year. I was able to reduce this in just a few minutes to a 3% increase. It was also a good thing that I phoned as I was able to check payment details, and ensure that payment of the premium was actually carried out.

Hopefully there won't be any other problems - but I'll have to keep an eye on this. With the problems of contacting people during the Covid-19 year it is quite easy to let things slip, or simply just not be able to get satisfactory service.

[Nick Armstrong]

This business model of upping premiums for existing customers (in the - no doubt very lucrative - hope of making money off the backs of the majority of passive customers who just let policies roll over without checking) has been in the news recently, and the practice stopped as of next year, apparently:

https://www.bbc.co.uk/news/business-57270415.amp

[Dave2002]

This business model of upping premiums for existing customers (in the - no doubt very lucrative - hope of making money off the backs of the majority of passive customers who just let policies roll over without checking) has been in the news recently, and the practice stopped as of next year, apparently:

https://www.bbc.co.uk/news/business-57270415.amp

Is that going to be one of the funniest jokes of 2021?

In my case the roll over would have seemingly caused problems anyway, which were so far not detected, as the company concerned did not have authority to take funds from whichever source I thought they knew about.
So one problem was avoided hopefully by my phone call.

[gradus]

Many insurers seem to try it on at every renewal as I find with my vehicle insurance. As Dave found it always pays to haggle.
For Buildings and Contents I find NFU Mutual better than most. They deal through agencies and our local one is housed in a converted barn complex a mile away. If I have a query I ring them and can go and see someone; letters if needed are issued the same day and without charge. Their claims payment reputation is good too. They also do a rather quaint renewal premium offer involving modest annual increases in return for a promise not to leave them for three years - it's worked for us.
If you need pet insurance I've found Animal Friends easy to deal with, reasonably priced and efficient. Excellent claims payment system too.

[LMcD]

When the premium for my Nationwide house and contents policy reached what I considered to reach an unjustifiable level, I told them that I no longer wished to (auto-)renew, and searched online for alternatives. The best buy for me - one that provided virtually the same cover for about a third of the cost - turned out to be an 'Essentials' policy offered by ... the Nationwide. I've no idea why they didn't at least mention it when they knew I was planning to look elsewhere.

[french frank]

I insure via brokers. Every now and again they recommend a better deal and do all the switching for me. (Originally, the one-man broker was a friend, but when he retired he sold his business to a larger firm and I've stayed with them).

[Dave2002]

Many insurers seem to try it on at every renewal as I find with my vehicle insurance. As Dave found it always pays to haggle.

On this occasion I would have paid the extra just to get continuity of insurance, though as I discovered that wouldn't have happened as the company concerned would have had to contact me again to take payment.
Shall we say that the company is also a bank, and I have several accounts with them, and I mistakenly assumed that they would take payment directly from one of those accounts - though I still need to check that I'm not paying twice now.

I'll maybe remind readers here that these companies - not just insurers - are not necessarily out to help customers, but rather to make profits.

There is apparently a database of people who don't or won't haggle, which companies refer to, so even just phoning up and querying a renewal charge will change your status from "complete idiot - we can do what we like with this one" to "might be more aware than we'd like of our policy on charges".

[Cockney Sparrow]

My first port of call for info on services and costs is Moneysaving expert. I've got car renewals coming up, and in December I called time on my house and contents insurer when they tried an outrageous premium increase on me. I haven't spent time understanding the detail, yet, but this is from Moneysaving expert's monthly email, received yesterday:

"A HUGE car and home insurance shake-up is coming
Prices for switchers likely to rise as insurers to be banned from charging existing customers more than newbies - check NOW if you can save, even if not at renewal
The regulator the Financial Conduct Authority confirmed last week that from January car and home insurers must charge renewing and new customers the same. While a popular move, it could push up prices even sooner for switchers, who currently tend to pay far less. So this is our clarion call for EVERYONE to check if they can save.
Prices will meet in the middle, but act now and you may beat the system.

Martin says: "With firms forced to offer new and existing customers the same prices, the new structure will likely meet somewhere a little above halfway between them.

"It's good news for those who never switch, as renewals will be cheaper. But it's bad news for those who actively seek the best deals. While they should still be able to save due to competition, differences will fall, and they'll pay more overall."

[Petrushka]

This business model of upping premiums for existing customers (in the - no doubt very lucrative - hope of making money off the backs of the majority of passive customers who just let policies roll over without checking) has been in the news recently, and the practice stopped as of next year, apparently:

https://www.bbc.co.uk/news/business-57270415.amp

I must have missed this news item so thanks for the alert.

My home and contents policy (with Saga) isn't up for renewal until October. Last October they sent me a highly inflated renewal notice which I assumed must have taken into account a third party claim I made against Staffordshire Police who, unbelievable as it may sound, crashed one of their vehicles into my front wall. Two days later, I received a letter from Saga saying that the renewal notice was an error and told me to ignore it and wait for an amended notice. This duly came and was for a much more reasonable amount, only a few pounds more than the previous year, so I was happy to pay. No haggling necessary.

[ardcarp]

This business model of upping premiums for existing customers (in the - no doubt very lucrative - hope of making money off the backs of the majority of passive customers who just let policies roll over without checking) has been in the news recently, and the practice stopped as of next year, apparently:

I wonder if they'll get round it somehow? We always have a good laugh when we renew our annual motor or home insurance. It's absolutely automatic that you ring up after a renewal notice and say "Is that your best price? We're thinking of looking elsewhere." The response is always, to hold on a minute while they see what they can do. And they always...after holding on a minute or five.. drop the price...sometimes to less than last year. It's a farce, but it must be to their advantage. I'm afraid they'll cook up some other fiddle...maybe automatically transferring you to another level of cover...unless we all remain alert.