RBS fixes home insurance premiums for three yearsHigh-street bank continues drive to end teaser rates

19 September 2015

RBS Natwest

First it was savings rates, then credit cards – now Royal Bank of Scotland (RBS) and NatWest have shifted their campaign to end 'teaser-rate' pricing to home insurance.

From 9 September, customers who take out RBS/NatWest's home insurance policy will see their premiums fixed for three years. Your initial premium will not change for two consecutive years, so long as you renew each year. 

The only way your premium could change is if you make a claim on your policy, or amend it by adding extra cover or moving home as two examples.

Find out more: Home insurance reviews - see how companies compare

Banning teaser rates   

RBS' new strategy contrasts with other insurers, which usually offer cheap premiums in the first year to look attractive, only to hike them later on once you're hooked in. If you don’t switch annually, or at least haggle for a better deal, you end up paying over the odds. 

This continues the state-backed bank's drive to put an end to teaser-rate pricing. Over the past two years, RBS has banned bonus rates on savings accounts, ensuring that customers taking out an account through any channel - online, in branch or over the telephone - receive the same rate. 

It has also scrapped introductory deals on credit card deals, such as 0% on balance transfers for a limited period. Instead, the bank now offers a low-rate credit card - the Clear Rate Platinum credit charging 6.9% purchase APR. 

Which? verdict

Finding out that your insurance premiums have rocketed when you renew, especially if you haven't made a claim, can be very frustrating, so with that in mind we really like the principle of RBS' new deal – and hope the rest of the industry takes note.

RBS/NatWest have strong buildings and contents insurance policies, scoring an impressive 76% in our analysis. Its customer scores – NatWest at 65% and RBS at 59% – aren't the best in the market, but if you're fed up of not having loyalty rewarded by your insurer, a three-year price promise may be worth a look.

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