Insurance renewal just dropped through the door with a massive increase?
It’s happening a lot at the moment.
The motor insurance market seems to be in complete turmoil.
The ABI, the Association of British Insurers, suggests that, across the UK, increases will average 21-23 percent for policies, but we’ve been hearing of much greater increases being proposed … in one case up 90 percent.
So, what’s going on and how in these difficult times can you keep your costs down?
Many of the big insurers are just now reporting 2022 trading figures and most are showing reduced profits … note not losses …but falls in profitability.
So why?
Like the rest of us their costs have increased… Higher labour costs for repairs, increases in parts costs, energy costs, vehicle hire costs… All have gone up.
The industry is reporting its worst results in a decade … but they’ve all had some good years and their investors have done very well, especially during the lockdown years. Did a reduction in your policy cost reflect the much lower mileage? No? So in such a turbulent market what can you do?
DONT PANIC!
Be proactive… Your insurers should be in touch at least a couple of weeks before your policy is due for renewal
Remember their first offer is just that. You need to negotiate. Do they want your repeat business or don’t they care?
Some insurers, notably Admiral, seem happy to shed tens, even hundreds, of thousands of customers to focus on their most profitable deals.
Begin the process early to find out what your current insurers will offer. Negotiate hard tell them you’ve had other, better, quotes.
Do check other insurers. Put in the research time, it’s worth it, but make sure you’re telling each agent the same details to ensure you’re comparing like with like.
If you are speaking to an advisor on the phone, take notes of exactly what their quote includes:
- Compulsory Excess
- Voluntary Excess
- Windscreen Cover
- Protected No Claims Discount
- Hire Cars
- Legal Expenses Cover
- Medical Cover
- Uninsured Driver Cover
- Charges for credit if paying in instalments
- An agreed value if your car is particularly special
- Any other extras/conditions/etc
Of course, these are all just as relevant when comparing deals offered on comparison websites or direct quotes online.
Remember, this might be a slightly lean time for the insurers, but that’s not your fault! Push hard for the best deal you can achieve. You can stress customer loyalty…. It might work… but to get the best deal, don’t just accept the first offer!
Admiral’s CEO MIGHT be willing to lose thousands of customers…. but YOU do the deal YOU need wherever you can find it.
Graham Benge
