It’s almost as if I planned it – just after writing about how financial inertia can affect your mortgage and insurance costs, I received the renewal letter for my home insurance.
It was everything I’d hoped for – let me quote what they said and translate for you.
“Dear Mrs Balders
Your home insurance is due for renewal shortly, and we’d like to tell you about the next steps in our renewal process to make things as easy as possible. (Things could become difficult from here on.)
Because you’re a valued customer we have kept your renewal price as low as possible. (We care about you and have made a lot of effort to find this price. Trust us, it’s not worth looking elsewhere.)
To make life easier we will automatically renew your policy for you so sit back and relax while we do the hard work.” (Life is hard enough as it is; looking for insurance is hard work. It will wear you out. You’d rather be relaxing, wouldn’t you? We care about you too much to let you get worn out. We’re your friends.)
|It only took a few minutes to get a better quote than my auto-renewal.|
Down to the nitty gritty: was it actually a good price?
They quoted £193.51 for the year – doesn’t sound bad for a year’s insurance of my only major asset, but I know it was £157.45 last year. I haven’t made a claim, so they’ve raised my premium by £36.06 for no particular reason.
Hey, I reasoned, maybe it’s due to insurance costs being up all around. I thought the best thing to do would be to quickly run a comparison search on Quidco, because that’s where I found my cheapest insurance quote last year (I will admit that I use TopCashback for most purchases, but for some reason Quidco has given me better prices for my insurance, so I instinctively checked there first). The first search I ran came back with quotes starting from £130.04. That means that not only would I spend £27.41 less than last year, I’d spend £63.47 less than my current insurer wants.
Now, I didn’t buy the insurance policy straight away as I was actually supposed to be tiling my bathroom at the time, and as much as I trust Quidco Compare’s results, I want to wait until I have a bit more time free to check as much of the market as I can. It probably took 10 minutes or less to run the first search, so I doubt I’d spend a full hour chasing it up in all. Yes, I’d rather be sitting back and relaxing, but not if that hour’s relaxation is going to cost me £63!
And let’s not forget one very important bit: the cashback. I earned £20.36 last year on my policy, which brought the actual price down to £137.09. My current insurer wouldn’t give me a cut of their commission, since they’re not paying any! If I took up the cheapest quote from my search, that would give me £19.29 in cashback, bringing the price down to £110.75. That’s potentially a discount of over 42% for a few minutes of clicking on a laptop.
The fact is, most insurers raise their premiums every year; think of it as a tax on laziness. Want to beat the laziness tax? Commit to shopping around for your insurance, and after that, sit back and relax.
Ever had a cheeky renewal quote that you beat?