• Wednesday, February 28, 2024
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BusinessDay

Insurers urged to show old premiums

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New research from the consumer watchdog has found that most consumers support having their previous premium on their renewal quote, with 85 percent saying it would be useful.

Six in 10 (62 percent) respondents said they found it annoying that it is not included and only 7 percent agreed that it would be hard for companies to do. Without this information, people lack the incentive to shop around as they’re not able to easily see if they’re paying more and why, Which? said.

More than two-thirds (68 percent) of respondents said last year’s premium would prompt them to look for a better deal with other insurers, and about the same (64 percent) said they would be more likely to haggle for a discount with their current insurer if they had this information.

But ABI director of policy Huw Evans said “renewal should never be just about price” and that getting the right cover for a policyholders needs was “vital”.

“Insurers agree that it is important for customers to take advantage of a competitive insurance market and shop around and most already do; 73 percent of customers have shopped around for motor insurance, and 75% of people shopped around for a home insurance provider,” Evans said.

A separate survey of Which? members found that people who haggled and switched providers on their car insurance managed to save an average of £131 on their renewal offer while those who did nothing paid just £4 less. Those who switched providers saved £105 on average.

Which?’s ‘We don’t want to pay a premium’ campaign is also calling on insurers to provide customers with their number of years of no-claims bonus and ensure renewal letters are received by the customer at least three weeks before the insurance is due to renew.