Don’t Let Insurers Rip You Off In 2023 As Premiums Rise – Prepare To Challenge Your Price Or Change
The New Year will herald a flurry of insurance renewal notices
But shop around and watch out for higher premiums this year
<!–
<!–
<!–<!–
<!–
<!–
<!–
The New Year will bring a flurry of renewal notices for auto, home and travel insurance policies.
Everything seems to indicate that they will lead to increases in premiums that will end inflation. For example, the cost of auto coverage is rising by an average of 14 percent (source: Comparethemarket), with those 50 and older seeing the biggest increases.
Although the regulator has tried to prevent insurance companies from penalizing loyal policyholders with premiums higher than those paid by new customers, this does not mean that anyone who receives a renewal notice in the coming weeks should meekly accept it. Surveillance is the order of the day.
Renewal time: The New Year will bring a flurry of renewal notices for auto, home and travel insurance policies.
In fact, anecdotal evidence demonstrates the value of taking up the sticks. Mail on Sunday reader Martyn Hunter, of Waterloo-ville in Hampshire, has been a More Than home insurance customer for many years, during which time he has occasionally managed to get his renewal premium reduced by phoning and threatening to leave.
This year, his insurance, which would have been renewed in three days, was due to increase by 30 percent. But as soon as he got the renewal notice (just before Christmas), he phoned More Than.
By agreeing to a couple of minor changes to his coverage, plus taking advantage of a discretionary discount for loyal customers, he cut the cost below what he paid 12 months earlier.
‘I’m retired,’ says Martyn, ‘so every penny I can save is crucial. Anyone facing the kind of premium increase I was asked to know about, especially the elderly, should challenge her insurer.’
Martyn is absolutely right, although the purchases also make a lot of sense. My lovely cleaner Ingrid, a font of strong personal finance knowledge, got the annual travel cover from her at a lower price by shopping around.
This is because your provider (Cover For You) wanted more than double the premium (from £69.34 to £177). Although she is an avid traveler (Ingrid enjoys her cruises and often visits her son in Spain), she doesn’t know why Cover For You wanted her to pay a ‘special price’ of £177.
Years? Maybe (she is over 60). But she is pleased that the post office has offered her the ‘best’ cover for just £64 a year. Then, she reminds herself: loyalty still doesn’t pay. Insurers, I’m sure, are using the cloak of double-digit inflation to push unjustifiable premium increases.
Stand up like Martyn, and if you must, do an Ingrid and shop around.