With increasingly busy lives and an on-demand culture, people want and need things (like choosing the right insurance policy) to be quick and easy. This often means that consumers don’t shop around at each renewal date and this could result in them missing out on the best deals.
Of course, your insurance policy isn’t just about finding the best price. It is equally important to find coverage that suits your circumstances.
Working closely with a broker who will take the time to get to know you, your requirements and budget is the best way to find the right policy at the right price.
New versus loyal customers
Many insurance companies focus on attracting new customers rather than rewarding loyalty – and the customer acquisition market is competitive.
Research has suggested that insurance premiums typically increase each year if a consumer stays with the same insurer.
This means that reviewing what coverage you need, and available insurers, at each renewal date could in fact save you money compared to just renewing your current policy.
While this research focusses on personal home and motor insurance, the principle follows across most business insurance categories.
Choosing the right cover
Taking the easy option and signing up with the same insurer for another year without checking the details, and the price, could also mean that you are:
- over or under insured
- have an excess that is too high or too low, or
- simply have the wrong cover
Many of these things might not seem like a problem, until you need to claim.
Stating the increase in price from the previous year is now mandatory for personal insurance policies, but does not extend to businesses. This means that busy employees and business owners who have to keep on top of the many yearly insurance renewals can’t immediately see if they are getting a good deal from their current provider.
Comparison websites can help consumers review some of the policy options and insurers available. However, if you do not fit into a set of criteria you may find that some insurers won’t insure you and sometimes this means that the best deals are missed.
Particularly for businesses and medical practices, having an actual person to discuss your current situation with, who can then shop around for the best policies available and wade through any technical jargon is a blessing.
It relieves the pressure, helps with time restraints and gives peace of mind that the policy chosen is the right one.
Your next renewal
With the government introducing an increase in insurance premium tax, the need to shop around for the best policy and price is even more important.
When you have a number of insurance policies to check, arrange and renew – from professional indemnity and practice insurance to cyber liability and locum cover – the cost of not shopping around can quickly add up.
Weigh that up with the time spent working out any change in requirements, form filling and quote gathering, it is a lose-lose situation.
A time and cost-saving option is to work with a trusted broker.
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