Insurers should be upfront about last year’s premiums, says Which?
Wednesday 26th February 2014
Consumer watchdog, Which?, has launched a new campaign calling on insurance companies to show last year’s premium alongside renewal quotes, so consumers can find the best deal possible.
New Which? research has found that the majority of consumers support having their previous premium on their renewal quote, with 85% saying it would be useful.
Without this information, people lack the incentive to shop around as they’re not able to clearly see if they’re paying more and why. Two-thirds believed having last year’s premium would prompt them to look for a better deal with other insurers, and around the same say they would be more likely to haggle for a discount with their current insurer with this information in hand.
Only one of the major car and home insurers surveyed, Swiftcover, already provides last year’s premium on car insurance renewal reminders but there is no reason why other companies can’t follow this approach.
Which? Executive Director, Richard Lloyd, said: “Our research shows it pays to shop around when renewing your insurance, and that’s good for all consumers too as it helps keep the market competitive. But it’s not easy to find a good deal if you don’t know what you paid last year.
“People have told us that if insurers made it easy to find out the cost of their old premium it would prompt them to look for a better deal or haggle for a discount. So we’re asking people to support our campaign calling for all insurers to be more upfront when they send out renewal notices by showing customers the premium they paid last year and explaining any differences.”
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