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Don’t let insurers rip you off in 2023 as premiums rise – be prepared to challenge their price or switch
- The new year will usher in a wave of insurance renewal renewal announcements
- But shop around and watch out for higher premiums this year
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The new year ushers in a flurry of renewal messages for auto, home and travel insurance.
Everything points to the fact that they will lead to premium increases that quell inflation. For example, the cost of car coverage is rising by an average of 14 percent (source: Comparethemarket), with the over-50s being hit with the biggest increases.
While the regulator has tried to prevent insurance companies from penalizing loyal policyholders with higher premiums than new customers, that doesn’t mean anyone who receives a renewal notice in the coming weeks should meekly accept it. Vigilance is the order of the day.
Renewal time: The new year ushers in a flurry of renewal notices for auto, home, and travel insurance
Indeed, anecdotal evidence proves the value of taking up the bats. Mail on Sunday reader Martyn Hunter, of Waterloo-ville in Hampshire, has been a customer of a More Than home insurance policy for many years, during which he has occasionally managed to get his renewal premium reduced by calling and threatening to leave .
This year, his insurance, which would have been renewed in three days, would increase by 30 percent. But as soon as he received the extension notice (just before Christmas), he called More Than.
By agreeing to make some minor changes to his coverage — plus take advantage of a discretionary discount for loyal customers — he cut costs below what he paid 12 months earlier.
“I’m retired,” says Martyn, “so every penny I can save is crucial. Anyone facing the type of premium increase I’ve been asked for – especially the elderly – should contact their insurer.’
Martyn is absolutely right – although shopping is still very useful. My lovely cleaner Ingrid, a wellspring of solid personal financial knowledge, got her annual travel cover for a lower price by shopping around.
This is because her provider (Cover For You) wanted to more than double the premium (from £69.34 to £177). Although she’s an inveterate 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.
Age? Maybe (she’s in her late sixties). But she’s glad the Post Office has offered her ‘better’ cover for just £64 a year. So remember: Loyalty still doesn’t pay. I’m sure insurers are using the mantle of double-digit inflation to force unjustified premium increases.
Stay on your corner like Martyn – and if you need to, do an Ingrid and shop around.