Every year our home insurance renewal is never competitive meaning we have move insurer
There’s no benefit from being loyal towards an insurer nowadays when it comes to home insurance. Every year when my renewal email enters my inbox I never for one minute believe it will be competitive.
For several years we have moved between the same three insurers to ensure our premiums are kept low and don’t add to the pressure of the household budget. Personally we would prefer to stick with the same insurer and keep things simple, but yet again last month we moved to yet another insurance because it was around two hundred pounds cheaper than our current insurers renewal premium.
What happened to rewarding loyal customers? Its not a problem unique to home insurance or car insurers. It seems companies in general want to entice in new customers by consistently offering them better deals than an existing customer who could have been with a company for ten years.
An example of this was when I wanted to upgrade my work mobile. I have been a customer with Vodafone for twenty years and I have four numbers/mobiles with them. Vodafone wanted to charge me £100 for a phone, yet if I cancelled my phone that day and came straight back I could have it for free. Obviously this was not possible because to do that I would have lost my current mobile phone number and that was unacceptable.
I digressing, but it is not just uncompetitive renewals that piss me off. Why is it that after you have spent hours trawling the internet and come back to your current insurer they suddenly drop the premiums to match another insurers quote? Take a friend of mine in her 90’s who has been with a well known high street bank for decades. She is of the generation that still trusts the banks to do the right thing and look after its customers.
My friend was paying in the region of £600 a year in premiums but on renewal it increased by another £50. Knowing what I pay I thought the premium was a bit steep. After spending an hour searching round I got the exact same cover from an over 50’s insurer for less than £200, a saving of over £450!
I had to do some persuading for my friend to switch insurer as she was concerned it was “cheap” and that she “trusted” the bank. Finally she did mov and has been with this new insurer approaching on a year now. When you consider she was overpaying for the cover by around £400 a year it all adds up to a tidy amount over the many years she had been with the bank.
But here is the part that really annoyed me. When I told her bank she was moving to another insurer they offered to match the premium quoted by the over 50’s insurer. This just rubbed me further up the wrong way because if they could do that now then it showed the renewal was a rip-off
The relationship between a policyholder and insurer is one of trust and as anyone knows trust is built up over time, but thanks to the internet and comparison sites consumers tend now to seek out the cheapest policy rather than the best cover.
You can’t ever be able to build any form of relationship when you move insurers every year. They should provide the best quote straight away and should make offers they make available for new customers to existing ones.
It is no wonder we live in a throw-away society when insurance companies selling home insurance throw us away at renewal and continue too only be interested in chasing new policyholders….