Insurers could be forced to outline their customers’ previous premiums at renewal time, under new Financial Conduct Authority (FCA) proposals.
The proposal is part of a wider shake-up of insurance renewals, which aims to make the process clearer and encourage customers to shop around for a better deal.
Which? has campaigned for these changes to be made as part of its We Don’t Want To Pay a Premium campaign, which launched in February 2014. The petition has had more than 30,000 signatures so far.
Which? executive director, Richard Lloyd, said:? ‘The Financial Conduct Authority’s proposal is good news for the thousands of people who supported our campaign for insurers to show last year’s premium on renewal letters.
‘This simple change should help people save money by prompting them to shop around or haggle for a better deal with their current insurer.’
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Consumers would welcome insurance comparison changes
Which? research found that 85% of consumers would find it useful to have their previous premium on their renewal quote and 68% said it would prompt them to look for a better deal with other insurers. Furthermore, 64% said they’d be more likely to haggle for a discount if they knew last year’s premium.
One major insurer has already put this proposal into practice. Axa began printing last year’s premium on car insurance renewal letters in May and rolled the system out to its other products in June.
Find out more: renewing your car insurance – a host of useful tips and tricks to consider
How to cut the cost of cover at renewal time
1. Start with a comparison site
Use a comparison site to find a number of quotes quickly and easily. Remember to check the details of the policies you are interested in to make sure they have everything you need.
2. Avoid auto-renewal
Insurers reserve the best deals for new customers. Never allow your policy to roll into another year without shopping around for a lower premium.
Even if you want to stay with your current provider, getting quotes from competitors can be a great way of getting a better deal. Once you’ve found a cheaper rate, you can use this as a platform to haggle.