Sticking with the same insurance year in, year out could mean you’re missing out on hundreds of pounds worth of savings. If that isn’t enough, here’s 5 more reasons why it pays to shop around.
If you haven’t switched insurance provider in the last 12 months then you could be missing out on much more than potential savings.
Getting into the habit of regularly reviewing your insurance policies will not only get you the best price, but it will also mean that you have the best possible cover and make sure you have a policy that will pay out when you need it most.
Our lives and circumstances are continuously changing and shopping around for your insurance is the only way to make sure you are always adequately protected.
Still not convinced? Here’s our top 5 reasons why it pays to shop around for your insurance.
1. You learn that loyalty doesn't pay
When it comes to insurance, loyalty tends to be a one-way street. Fail to shop around and it is your insurance provider who will be the main beneficiary when it comes to renewal time.
As an experiment, try gathering together your renewal notices from the last few years. Does a pattern begin to emerge? You will most probably notice that your insurance provider has rewarded your loyalty by steadily increasing your premiums year upon year. And why wouldn’t they? They are in the business of making money, after all.
Shopping around will almost always help you save on your insurance as your current provider will only ever put your premiums up when it comes to renewal time.
If you are determined to stay with your insurance provider then you can always use a competitor’s quote to help drive down the price of your renewal.
2. Your insurance will pay out
Shopping around isn’t all about getting the cheapest policy possible. The whole point of taking out an insurance policy is to make sure that you will be compensated if the worst should happen.
Ensuring that you have the right cover can not only mean the difference between your policy paying out or not, but it’s also a great way to keep the cost of your insurance down by not paying for cover that you do not need.
3. You stay up to date
The insurance market is always changing and it now seems as if there is an insurance policy out there for just about every eventuality.
But how many of us could have foreseen the level of disruption caused by the volcanic eruption in Iceland? Thousands of stranded holiday makers found themselves out of pocket after cutting costs and corners by going for an ‘off the peg’ insurance policy without checking what they would be covered for.
While no-one could have predicted such a dramatic event, shopping around is a good way of keeping your finger on the pulse of the insurance market.
Forewarned is forearmed, as the saying goes, and it could mean the difference between being adequately covered for almost all circumstances and sleeping on an airport chair for a week.
4. You don't pay for cover you don't need
Unfortunately, time waits for no-one and our lives are constantly changing. Getting into the habit of reviewing your insurance can help ensure that your policy keeps pace with any major changes to you personal circumstances.
This can have many benefits, particularly when it comes to motor insurance. Racking up another year’s no claims bonus, moving in with a partner, a change of job which lowers your annual mileage or your car dropping in value can all result in lower premiums
Likewise giving up smoking could bring the cost of your life insurance down, while if you suddenly inherited a valuable family heirloom you would want to make sure that it was covered by your home insurance policy.
Shopping around will help you identify the policies and providers that will enable you to take advantage of any changes to your personal circumstances and reap the benefit of reduced premiums.
5. You get the new customer treatment
The insurance market is extremely competitive and the biggest players are always vying for your business. Sticking with the same insurance could mean that you are missing out on big savings from the kind of introductory offers and discounts designed specifically to attract new customers.
Unfortunately, existing customers rarely get to reap the benefits of these kinds of offers. Building up a healthy no claims discount with your existing insurer won’t result in your premium going down unless you switch providers.
Even changing how you pay for your insurance can be an opportunity to make savings, especially if you are paying for it monthly - as this often bumps up the cost of cover considerably.
