Loyal customers are wasting millions by sticking with their financial providers instead of shopping around for the best deals.
Exclusive offers for existing customers are not always the best value, but often just an excuse for costumers to take the lazy option and sign up again. Money is tight for everyone, and few can afford to give away hard-earned cash to an insurance company or bank without receiving a top-rate deal in return.
Research shows that despite the advertising, no insurer, bank or building society offers the best terms to customers for all their products. Finding the best cheap car insurance or home insurance comes down to spending a little time on a good comparison web site or tasking an experienced broker to do the job for you.
After all, comparison web sites are just jazzed up insurance brokers letting you search out a deal yourself rather than having someone ring round for you.
Fewer special offers on the way for new customers
Insurers bank on knowing that the bulk of their customers are lazy and will not bother to look at what their rivals are offering.
If you are thinking of jumping ship to another firm for your car or home insurance, check out the market as soon as you can, because some industry experts are warning that incentives to new customers will soon dry up. Insurance costs are rising and special offers eat in to margins that reduce profits for insurers.
With 73% more firms in the market place since 2004, something has got to give if these firms want to go on making big profits; and if they want to offer the same levels of cover, the only way to continue without hiking insurance costs is by cutting costs which are likely to include fewer incentives to new and existing customers.
But all is not lost… remember that insurance firms need your business; so making sure you drive a hard bargain.