Hidden Costs in the "Guaranteed to Beat Your Renewal Quote" Promises?

Nearly every insurer in the UK touts huge savings for customers that switch to them from their current insurer. But NoClaimsDiscount.co.uk has been digging through the small print and the savings listed when a policy is actually purchased may not be any saving at all depending on how the policy is run after buying.

Peterhead, Aberdeenshire (PRWEB) November 19, 2008 -- NoClaimsDiscount.co.uk notes that when looking to renew your car, home or travel insurance, there is no shortage of companies who will claim to "beat the renewal quote" of any insurer. For example, the First Direct website offers to beat any car insurance renewal by at least 10%. Online purchases are also being touted as a way to save costs with an online home insurance policy with Churchill promising a saving of 15%. Privilege assures car insurance (http://www.noclaimsdiscount.co.uk/car/) customers of a 25% discount for breakdown cover at the top two levels, if purchased online. The Post Office gives £50 back on new car insurance and Halifax gives as much as 35% off home insurance to customers taking both building and contents cover.

But, while there seem to be more incentives for customers to jump ship, it's important to remember that these are just introductory discounts designed to lure customers: premiums will go up the following year and could surpass the amount that would have been paid to the original insurer (http://www.noclaimsdiscount.co.uk/insurance/). Also, there are hidden costs and conditions to most offers, such as cancellation fees. These can often be one month's premium plus an admin fee which can be upward of £60 - often wiping out any savings made by switching.

Luckily, as far too many people were switching insurers once renewal quotes came in, some insurers are changing their advertising strategies and adopting ways to retain clients. More Th>n offers two months' free cover on renewal if the customer has not made a claim and building insurance customers can receive free contents cover if there has not been a claim made previously. Other examples such as vandalism claims with First Direct no longer affecting the customer's no claims discount (http://www.noclaimsdiscount.co.uk) and Direct Line's uninsured driver claim protection, show a dramatic development in this area.

This means that policyholders, both old and new, can now enjoy substantial benefits and savings without having to switch insurers every single year. Remember also, that as a customer, you have every right to negotiate for the best price. This may not be realistically possible with budget or Internet-only insurers. However, try calling old school insurers like Norwich Union or Liverpool Victoria (http://www.noclaimsdiscount.co.uk/insurance/about.php?show=1041) at renewal time and ask them what they can offer to prevent you from switching, and you may just get yourself a great deal.

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