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Scottish Sun
06-08-2025
- Automotive
- Scottish Sun
Why companies bet on customers being lazy but a five minute phone call could save you £100s
Check how to cut your car insurance costs PRICE IS RIGHT Why companies bet on customers being lazy but a five minute phone call could save you £100s Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) WHEN the letter from our car insurer landed on our doorstep last week, I immediately sprung into action - just like I do every year. The insurer wants to renew our policy for £634 a year, down from £768 last year. Sign up for Scottish Sun newsletter Sign up 1 When the letter from her car insurer landed on Consumer Editor Alice Grahns' doorstep last week, she immediately sprung into action. However, a quick check on comparison site Compare the Market shows the same insurer offers a policy for an even lower £576. My husband gives them a call and after just five minutes, our renewal price is suddenly dropped to just £544 for the same policy as last year. All we needed to do was explain where we had seen the cheaper deal and threaten to leave for another insurer if it couldn't match the better price. It's the same saga with our insurance providers every year - and it works 99% of the time. It comes more than three years after the Financial Conduct Authority introduced its loyalty penalty ban in 2022. Under the rules, when existing home and car insurance customers renew their policy, the price charged can't be more expensive than the price they charge an equivalent new customer for the equivalent policy. However, a loophole in the rules allow insurers to give renewal quotes that aren't always the cheapest they can offer. Insurers can charge different prices based on how you pay - for example, customers renewing a policy over the phone might be able to get a better deal than if they purchase online. Plus, they can also reserve their best prices for customers who negotiate. In other words, the onus is on you to pick up the phone. They will not offer you their best deal unless you ask. Last year, 23.6% of 4,000 UK respondents renewed their car insurance premiums without shopping around, according to GlobalData 2024 UK Insurance Consumer Survey. Meanwhile, 43.4% shopped around but ultimately renewed and 29.2% switched to a new insurer. And it's saving them serious cash. In July this year, consumer group Which? found motorists managed to knock over £200 off their renewal quotes simply by haggling. Sam Richardson, deputy editor of Which? Money, said three in five (61%) of those who contacted their insurer got a reduction to the original price offered. Rhydian Jones, car insurance expert at added: 'Car insurance prices have dropped by £144 on average over the past year, but many drivers still aren't seeing those savings - in fact nearly half (49%) are facing higher renewals. 'That's why it's so important to consider switching or negotiating at renewal. 'It all starts with shopping around, it's the only way to know if the price you're being offered is the best available to you. 'Even if your renewal quote looks reasonable, it might still be overpriced in today's market. "Taking the time to research your options and not being afraid to question or negotiate your renewal can lead to real savings at a time when every penny counts. An FCA spokesperson said: 'We always encourage people to shop around and to negotiate. 'Insurers can offer discounts to renewing customers but must make sure they provide fair value to everyone. 'While we don't set prices, we've acted to protect customers where we've seen they're not getting a fair deal on their insurance'. How to haggle over the phone If your insurer has increased its renewal price, ask it to justify the increase. Then point out the lower prices you have found elsewhere, and ask your insurer if it can better those offers. If it is not able to provide a better quote, state that you are willing to go elsewhere. If you have been a loyal customer for many years, it could be worth mentioning this. If the insurer is not budging much on the premium but you would still like to stick with your provider, one option could be to ask for an add-on (such as breakdown cover) to be thrown in. Just make sure that it is worth it. Other ways to cut your car insurance premium Pay upfront Many insurers charge extra fees for monthly payment plans. These can vary, but might include set-up fees, transaction charges or interest for spreading the cost over several months. By paying annually, you can avoid these extra costs and keep more money in your pocket. Drivers can typically save up to £59 by paying for their annual car insurance premium in one lump sum, according to Which?. Tweak your job title Certain jobs are seen as riskier than others for insurance purposes. Small but accurate changes to your job title can slash your premium. For example, swapping your role from "chef" to "caterer" can save you £113, MoneySupermarket has found. And changing from 'car dealer' to 'motor dealer' could save you £310. It's important not to lie about your job though as it could invalidate your policy, so make sure any tweaks are legitimate and accurate. Save the date Renewing your car insurance sooner rather than later could save you some cash. New cover becomes more expensive the closer you get to renewal. You can buy your insurance up to 29 days before the policy start date and "lock in" the price you are quoted that day. Aypical driver can save up to £150 by buying new cover at least 26 days before their current policy ends, according to GoCompare. Increase your excess Your excess is what you agree to pay each time you need to make a claim on your policy. When setting up, you can usually choose your own excess, which can be as low as £100 and as high as £500 or more. The higher your excess, the lower your premium and vice versa. This means you could lower the cost of your insurance by agreeing to pay more if you need to make a claim. But before you hike your excess, make sure you would be able to afford it if necessary. Do you have a money problem that needs sorting? Get in touch by emailing money-sm@ Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories
Yahoo
27-06-2025
- Automotive
- Yahoo
RAC wise to target younger and older motor insurance customers with telematics policies
The RAC is launching two, new forms of telematics insurance; targeting both younger and older customers in the UK. GlobalData's 2024 Emerging Trends Insurance Consumer Survey suggests this is a positive move to attract new customers. It has partnered with the insurtech Ticker and launched a policy targeting young drivers with traditional telematic policies. It will release a pay-per-mile-type policy later this year, which aims to target over 60s who drive fewer miles. GlobalData's survey found that both telematics and pay-per-mile insurance policies were effective ways of increasing customer satisfaction. It found that of global consumers who had a telematics policy, 77.4% of them were either satisfied or very satisfied with the premium savings it led to in their policy. Furthermore, 89.2% would be quite or very likely to recommend this type of policy to a friend. Pay-as-you-go (PAYG) policies had slightly-lower satisfaction rates. They were still strong though, with 6.4% satisfied or very satisfied with its impact on premiums and 84.2% quite or very likely to recommend it to a friend. This highlights the widespread satisfaction levels with telematics and PAYG policies around the world. There can be some skepticism among those who do not have such policies, with many hesitant to share personal data or have their driving judged, but GlobalData's survey strongly suggests that those who do have it are satisfied. Therefore, the data suggests a higher likelihood of renewal. The RAC is not a leading player in the UK motor market at present—GlobalData's 2024 UK Insurance Consumer Survey placed them as the 14th-biggest motor insurer in the UK with a 2.1% share. However, its specific targeting of the two, crucial demographics of younger and older generations appears wise. They are two age groups that require more-tailored treatment due to being higher risk and facing higher premiums. Therefore, if the RAC can market its new products and attract customers, it should see strong retention and even growth via word of mouth. "RAC wise to target younger and older motor insurance customers with telematics policies" was originally created and published by Life Insurance International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Erreur lors de la récupération des données Connectez-vous pour accéder à votre portefeuille Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données
Yahoo
17-04-2025
- Business
- Yahoo
LV= falls short in ESG ratings
LV= occupies the lowest position among the top ten personal lines insurers with respect to supporting environmental, social, and governance (ESG) initiatives, a GlobalData survey has revealed. Furthermore, The Good Shopping Guide's assessment of ethical insurance ratings, which evaluates insurers based on criteria ranging from climate policy to corporate behaviour, indicates that LV= has received a low score in this domain. GlobalData's 2024 UK Insurance Consumer Survey has found that among the leading insurers, Barclays leads in terms of ESG support with 12.0% of promoters. This positions Barclays as a leader in consumer perception regarding its commitment to sustainable and responsible practices within the non-life insurance sector. On the other hand, LV= ranks at the bottom of this group with only 2.9% of promoters. Meanwhile, The Good Shopping Guide has recently published its latest Ethical Insurance Ratings, assessing insurers on various criteria, including climate policy and corporate behaviour. In the mainstream insurance market, Aviva and its subsidiaries, Quote Me Happy and General Accident, achieved impressive scores of 92 out of 100. Aviva's commitment to achieving net zero carbon emissions by 2040 and its decision to abstain from political contributions are particularly noteworthy, especially in an industry often criticised for its environmental impact and political entanglements. This commitment is further validated by GlobalData's survey, which ranks Aviva third in terms of the share of promoters for supporting ESG initiatives. In contrast, several well-known insurers received low ratings. LV=, which operates as a personal lines brand under Allianz, and Allianz itself found themselves at the bottom of the rankings, each earning a mere 18 out of 100. These companies faced criticism for their lack of transparency in reporting, their failure to divest from harmful industries such as fossil fuels and arms, and their absence of credible environmental or social governance policies. Supporting ESG causes is increasingly vital for insurers, as it not only reflects a commitment to ethical practices but also addresses the growing concerns of consumers and investors regarding sustainability and social responsibility. Insurers that prioritise ESG factors can enhance their reputation, build consumer trust, and attract a more conscientious customer base. Moreover, as climate change and social issues become more pressing, regulatory bodies are likely to impose stricter requirements on companies to disclose their ESG practices. Insurers that proactively embrace these principles may find themselves better positioned to navigate regulatory changes and mitigate risks associated with environmental and social challenges. In summary, the importance of supporting ESG causes cannot be overstated for insurers. As consumer awareness and regulatory scrutiny increase, those that align their business practices with ethical and sustainable principles will likely thrive, while those that fail to adapt may struggle to remain relevant in an evolving marketplace. "LV= falls short in ESG ratings" was originally created and published by Life Insurance International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
