Insurers are often focussed on attracting new customers rather than keeping existing ones as acquisition is seen as a sign of a thriving company. This makes the new customer market very competitive, and leaves loyal customers picking up the bill with higher renewal premiums.
While it might seem unfair, it does mean that there are deals to be had and it pays to shop around at your renewal period.
This perhaps sounds like a time consuming task, particularly if you have a number of policies to renew, but a survey of car and home insurance policies found that you could be losing out on up to £1,000 a year – that has to be worth the time to get a new quote.
Benefits of changing insurers
Not simply accepting your renewal quote has many benefits, including:
- You can check your policy details are up to date so you have the right level of cover.
- You can access better premiums.
- No one insurer has the right policy or price for each person or business so if circumstances change, or priorities of insurer changes, it is good to switch.
Tips to save money on your insurance
Changing insurer, or checking your quote and policy when you receive your new premium, is a good idea. Here are some tips to help you save money on your insurance.
Shop around – As research suggests that renewal premiums are higher than new quotes, even with the same company, you should not just automatically renew your insurance policy. Get some new quotes based on the same information in your current policy so you have a comparison.
Switch early – According to a car insurance survey by Comparethemarket, gathering insurance quotes three weeks before your renewal date can save you £280 compared to renewing on the day.
Check your excess – Your insurance premium will move up or down depending on your chosen excess. Make sure you set this at a value you are comfortable with and can afford.
Check your job title – Surgeons are in one of the highest risk categories so it can pay to get your job title right. While you can’t misrepresent what you do, take a look through the options available and check the premium for the different roles you think define what you do.
Check extras – Avoid double cover by managing the extras on your insurance. Home insurance could include mobile phone cover, which you might also have a separate policy for. You can’t claim on both in the event of a loss so don’t pay for both now.
Use a broker – A broker can check a number of providers or policies without you having to get individual quotes. They will also know the right questions to ask you to help you get the right level of cover.
With comparison sites, particularly for professionals and businesses, if you do not fit into one of their specific categories, you may miss out in the best deals or not find a policy to suit you altogether.
Specialist brokers, like AllMedPro, are ideal for niche or hard to insure areas as they will have access to specific policies that cover your circumstances.
When you have a number of insurances to renew, using a broker is the quickest and easiest way to ensure you have the right policy at the best price.