Consumer champions want insurance companies to clearly print the cost of last year’s premiums on renewal quotes so customers can compare prices. The idea comes from Which? The organisation believes printing the prices alongside each other would encourage customers to shop around for better quotes.
A survey by the group revealed 85% of members said they would find the extra information on an insurance renewal quote useful. Nearly two-thirds say missing the information from a renewal is ‘annoying’ and easy to include.
Many insurance customers (68%) said comparing the costs would give them an incentive to compare quotes from other companies, while nearly two-thirds (64%) said they would haggle over prices if they had a comparison figure.
Other research by Which? disclosed that customers who negotiated prices with their insurers won an average discount of £131, while those who accepted the first quote picked up just a £4 discount.
Which? also wants insurers to tell motorists how many years of car insurance no claims discount they have on quotes. Currently, only one company publishes last year’s premium on home and car insurance renewals, and that’s Swiftcover.
Which? executive director, Richard Lloyd, said: “Our research shows it pays to shop around when renewing insurance, and that’s good for all consumers 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.”
Of course one way around the problem is to find a car insurance broker who’ll compare polices for you and talk you through every step of the way!
Find out more about the campaign online at www.which.co.uk/premium