Shop around for insurance – Richard Lishman Managing Director of the 4dentists group

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  Posted by: probe-admin      12th January 2019

Managing Director of the 4dentists group, Richard Lishman, discusses the importance of hunting for a bargain in order to save on the cost of insurance.

 

Purchasing insurance is something that homeowners and drivers don’t necessarily stop to ponder over when they’re making large purchases on houses or expensive cars. That’s because insurance does not really provide a tangible benefit that consumers can see in real time on a daily basis. Rather, insurance is regarded as a fall-back option that is only used in emergency situations. It is because of this lack of immediate benefit that many people blindly take out insurance without first considering if there are cheaper or more inclusive policies on offer.  

Employing this approach can not only cost you money, but it can also lead to negative repercussions in the future if you find out you are not properly covered. It is important that you get the best of both worlds – comprehensive insurance coverage at a low rate – but this requires doing a little price comparison shopping in order to obtain the best deal. Although it may be time-consuming having to assess various different insurance companies, the benefits of browsing for a bargain lie in the cover details that many people often overlook. Doing your research and taking the necessary steps will ensure you, your family and your property are protected from potential damages and exorbitant fees.

A survey conducted by Which?has revealed that loyal insurance customers are paying up to 38% more than new customers. These statistics equate to an average £75 increase on an existing customer’s insurance premium for combined policies such as buildings and contents cover.[i]Consumers often make the assumption that by staying with an insurer, they will be rewarded for their loyalty, but this isn’t necessarily true. In reality, being part of a cut-throat industry means that most insurance providers are always on the hunt for new business, so they will often tempt new customers with discounted premiums. As a result, loyal customers can find themselves shouldering the burden of paying higher rates in order to prop up loss-leading introductory offers.   

Yet, despite these price hikes, many people still make the mistake of not shopping around annually for new insurance. GoCompare’s study found that 15% of UK drivers allowed their cover to automatically roll-over for another year, without checking whether the price they were offered was competitive. Only 39% of drivers switched providers, indicating that 3 million motorists could be overpaying their car insurance by a collective £800 million through auto-renewals.[ii]This comes down to the fact that policyholders typically choose to take out insurance from a provider that seems most convenient or familiar. However, according to Consumers Intelligence, shopping around for a better deal means that policyholders could save more than £100 on their home or car insurance each year.[iii]

Although renewal guarantees enable policyholders to maintain their cover at all times, experts have argued that insurance firms do not effectively communicate all the options available to consumers. This is combined by a lack of confidence in switching providers, as policyholders worry that this is a confusing process, fraught with the hassle of having to fill out and submit extensive paperwork each year. It is for this and other reasons that the Financial Conduct Authority (FCA) introduced rules to make it easier to compare the price of insurance: companies now have to include the last year’s premiums when asking customers to renew.

Consequently, people are able to see exactly how much renewing could cost them, thereby encouraging them to look for a better deal should any premiums be higher than expected. Price comparison websites and applications can make shopping around for a bargain even simpler. It is essential to review the details of any policies you wish to take out, as this ensures you are not only getting value for your money, but are also properly covered. Otherwise, you run the risk of invalidating your insurance policy should something go wrong in the future.

In the unfortunate event of an accident or incident, your bank account could take a major hit from having to pay out for damages or medical costs. Insurance mitigates these expenses to a degree that is more manageable, but it is important to find the most suitable insurance package for you from the right company. This ultimately comes down to putting in the time and effort into seeking out a good deal. Be sure to explore all your options with the aid of an experienced dental specialist adviser. With over 100 years’ experience in the sector, insurance4dentists aims to provide business or personal insurance cover to suit you, ensuring that you are able to make the most of potential savings.

 

For more information please call 0845 345 5060 or 0754 DENTIST. Email info@4dentistsgroup.comor visit www.4dentistsgroup.com

 

 
[i]Which? (2018) Loyal customers pay 38% more for staying with their home insurer. Link: https://www.which.co.uk/news/2018/08/loyal-customers-pay-38-more-for-staying-with-their-home-insurer/. [Last accessed: 30.08.18].
[ii]GoCompare. (2017) The Great Auto-Renewal Swindle – drivers paying up yo £800m too much despite new rules on renewal letters*. Link: https://www.gocompare.com/press-office/2017/09/auto-renewal-swindle/. [Last accessed: 30.08.18].
[iii]Consumer Intelligence. (2017) Insurance customers ‘need to shop around every year’. Link: https://www.consumerintelligence.com/articles/insurance-customers-need-to-shop-around-every-year. [Last accessed: 30.08.18].


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