Loyalty’s usually one of those desirable qualities that we all strive for. Sadly though, data shows that the old adage of ‘the nice guy never wins’ is actually true and whilst loyalty’s a nice value, it really doesn’t pay – especially when it comes to insurance. In fact, being flighty could save you more than a £100^ in the long run.
Figures from Consumer Intelligence research, show that customers who switched their car insurance at renewal could on average save £63^; and home owners looking to switch after a year, could pocket an average of £37^.
But it doesn’t stop there, because the longer you’ve been a customer with the same provider, the greater the amount of money you could save by switching. For example, car owners who switch after staying loyal for at least nine years, could bank £116^ simply by moving insurance provider; whilst home owners could save £127^. And if you’re both a car and home owner – well, you don’t need a calculator to work out that those are some pretty impressive savings.
So, although it’s a win for savvy switchers, it’s a bit of a slap in the face for good old fashioned values like loyalty. It hasn’t gone unnoticed by consumers either, as a disillusioned 89%^^ think that insurance providers give their best prices to new customers. It’s a shame, but for many providers, the key to success is finding fresh buyers rather than keeping old ones happy.
Under FCA (Financial Conduct Authority) rules that came into effect in April, insurance providers’ renewal notices must now include the cost of last year’s premium – giving customers a clear comparison at the time of renewal. It might sound like a small change, but 52%^^ of people hope that it’ll encourage providers to think twice about quoting inflated renewal prices.
Of course, most of us lead busy lives and switching insurance provider can feel like too much effort; but it doesn’t have to be – just let us do the searching for you. Just answer a few questions about your car or your home, and within minutes we’ll have a whole list of quotes for you to choose from – it’s not magic, but almost. So, will you be like 50% of our customers who could have saved £282^^^ by switching, or will you be in our lucky 10% who could have saved £1,409^^^^ – let’s start comparing and find out.