Flora McCrone is your average 23 year old motorist who has a clean driving record and obeys the laws of the road. So it was very surprising when she received the renewal documents for her car insurance policy, only to find out that her premium had gone up 6% to £482 annually.
Surely if you are good driver then this shouldn’t be happening…right? Well, it seems that many drivers that are leaving their renewals in the hands of the car insurance company are not finding this to be the case at all.
Disappointed by the price going up, Miss McCrone, who is a student, decided that enough was enough and she was going to take matters into her own hands. How? By shopping around with different providers and getting new quotes so she could make the switch for a cheaper price.
It wasn’t long before Miss McCrone found exactly what she wanted, the same policy for less money, but when she looked again there was something that didn’t quite add up. It was being offered by the same company that her current policy was with. In other words, she was getting a cheaper deal by signing up again with the same company rather than simply allowing her existing policy to renew.
This new policy was 21% cheaper as well, which isn’t bad at all when you consider she wouldn’t really have to “switch” companies. A bit of extra paperwork maybe, but at the end of the day not a lot would really change.
A spokesperson for the car insurance firm, which is Endsleigh, owned by Zurich, stated “the industry is very price driven, especially when signing up new business…it’s not unusual to underprice a premium.”
I think the message is very clear here. Never, under any circumstances allow your car insurance premium to renew. Instead, shop around to find a better deal, starting at the same company you currently hold a policy with…there is a high chance you’ll get a much better deal by signing up for a new policy rather than going with a renewal.
It’s silly of course, but that is how a lot of these big car insurance companies do business these days. Large budgets maybe, but not much common sense at all. Perhaps they need to get together for a big meeting and write down at the top of a to-do-list to “reward loyal customers.” It would be a start.
The only other thing I would advise people to keep in mind when shopping for a new policy is to make sure you are comparing like for like. You might find a cheaper deal elsewhere or with the same company, but if the voluntary excess is higher or you don’t have as many extras included, then you are ultimately losing out. So spend some time and get it right just like Miss McCrone did, and you could also enjoy a 21% saving.