There are many industries where companies are constantly trying to devise new ways of keeping customers loyal. In fact, it is commonly thought that keeping a customer is far cheaper than attracting new customers. In insurance, however, often new customers get the better deals.
In a very competitive market, new business is seen as a sign of a healthy company which means there are usually discounts to be found if you take some time to shop around and switch providers during your renewal period.
The truth is that as many people don’t shop around at each renewal, insurance companies hope to recoup the costs of a low first year premium over the second and third years.
Regulations are helping make consumers more aware
The Financial Conduct Authority’s (FCA) decision to make it a requirement for insurers to be more transparent about last year’s premium when providing a renewal quote, has aimed to increase trust between consumer and insurer.
A Consumer Intelligence report found that on average more than 50% of people will shop around and switch insurer if their renewal quote increases by £40.
It also found that people were more likely to compare prices if their premium had gone down than if it stays the same!
With compensation claims and fraud increasing, combined with insurance premium tax rises and inflation, the overall premiums for insurance cover have steadily increased over the past few years. This does not mean that you can’t find a policy that is right for you at a good price.
Here are a few ways to help reduce your premiums
Pay your premium in full
Often paying the premium in one go rather than in instalments can save money
Balance your excess with your premium
You can usually reduce your premium by increasing the excess that you would pay if you made a claim. Make sure you set your excess level at an affordable amount and balance this with your policy cost.
Look for multiple policy discounts
Some providers offer discounts for choosing more than one policy with them.
Build up your no claims discount
You can increase your discount by not making a claim over consecutive years. Make sure you declare any no claims period when getting a quote.
Speak to your current provider
Sometimes your broker or insurer will be able to find you a better deal with your current provider. Give them a call to see if they can help.
Check your policy cover is still relevant
Remove parts of your policy that are no longer required and ensure that there are no items included that are covered under a separate policy you have. You should also check that there is nothing new to add on.
Work with a reputable broker
A broker will help you in a number of ways:
- Finding the policy with the right level of cover so you are not over or underinsured
- Saving you time searching various policies
- Providing specialist cover where needed as often niche brokers have access to the best cover at the best price
If you’re a medical or dental professional and your practice, professional or personal insurance renewals are close, contact us to see how we can help.
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