With previous reports of millions of people being overcharged for home insurance, the challenges for home owners continue with auto-renewal.
The problem with auto-renewal
Healthcare workers are extremely busy people and it would seem that being offered auto-renewal on your home insurance could save you a lot of time and hassle when your policy is due to expire. It means no need to get new quotes and discuss your current situation again and no need to worry about missing deadlines.
However, research by MoneySuperMarket suggests that those who simply auto-renew their policy pay on average an extra £32 per year compared to those who haggle or shop around.
This survey is on top of Citizens Advice’s claims that one third of homeowners are paying up to 70% more for their home insurance than necessary, with over 65’s faring the worst.
What many people don’t realise is that even if you do auto-renew your policy, you should be checking your cover details at each renewal point to ensure they are up to date and you are sufficiently covered for the year ahead.
This is particularly important if things have significantly changed at home, such as new high ticket purchases or new home security features.
Let’s take a look at the statistics
It may seem like small increases, but if you end up paying an extra £32 more each year than someone who shops around, over three years that is £96 more, and after five years that figure reaches £160. Suddenly, you can see how small increments can become significant.
The finding that home insurance price increases for loyal customers is contra to the general consensus that premiums in general for buildings and contents insurance are going down. The average premium in the first quarter of 2018 was £118 for a combined policy, which is down from £140 in 2013. That is a further reason for not opting for an auto-renewal policy.
It’s not always difficult to get a good price and the right insurance policy
You may not yet be convinced that the potential saving on your premium is worth the time you believe you need to invest in shopping around at your renewal period. However, purchasing insurance does not need to be difficult.
- The top priority is to understand if you can trust your renewal quote, with some insurers not able to provide their best prices through every outlet – read our article on the ‘Most Favoured Nation Clause’.
- Be reassured that regulations have changed in order to for insurers to be more transparent about how much your premium has increased or decreased on the previous year.
- Work with a trusted broker – look for a partner to work with long term and check out independent reviews – read our Feefo reviews here.
If you are looking for help to get the best price and the right policy without the hassle, contact the team at All Med Pro. Our specialist brokers know what questions to ask you and understand your career and industry in order to help you choose the right policy.
With our policies tailored for healthcare sector professionals, you’ll find niche insurance that fits your lifestyle.
For peace of mind that you and your business reputation are protected, contact All Med Pro for all your insurance needs.
T: 0203 757 6950 (Medical Enquiries)
T: 01793 820 100 (Commercial Enquiries)
F: 0203 757 6951
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