Loyal Customers Pay 70% More For Home Insurance
Find the right cost to renew your insurance policy:
About 13 million homes in the UK are financing for living together
According to research done by the Home Insurance Provider Financial Conduct Authority (FCA) and citizens’ advice, those who renew their policy with the same provider for 5 years, pay an average of 70% more than new customers. Yet most people do not even know that there is a penalty. Who is that? Explains that to ensure that you are getting the best Home Insurance deal
Premium growth home-based insurance for long-term customers is the most common insurance product used by people in the UK – but many providers are paying a lot more to fail to switch. The standard length of the Home Insurance Policy is one year. After this, most of the time’s policies are automatically renewed, unless customers opt out. Upon renewal, insurance providers increase the price of the policy, the FCA has warned. Customers who renew their policy after one year pay 8% more than new customers, while those who have renewed for more than 5 years, pay 70% more – even if they are on renewal Together with less premium, overall, 3 out of 3 home insurance customers have experienced an increase in their renewal value.
Most of the customers affected by loyalty fines also do not realize that they are paying additional costs, for the 32% people who have paid their policy 4 years ago for the first time, paying at least a conscious loyalty penalty, Customers over 65 years of age are also likely to be affected.
How is home insurance premium calculated? Home insurance providers use a wide range of factors to determine how much their costs are. This can include the size and location of the property, whether any add-on is selected, and whether any previous claims have been made. As a result, the prices paid by customers can vary considerably, even for two families with same property on the same street. But the length of time living with the policyholder insurer does not have any effect – in fact, the FC found that the average expectation of potential home insurance claims is exactly the same for new customers because it is for those who choose Renewed. So when renewal customers pay more, they do not have any risk of additional costs to insurance companies. Learn more: How to upgrade your home insurance In light of the evidence, the FCA introduces new rules to clarify the renewal fee for customers, reflecting the increasing cost of the home insurance premium. Changes, which came into effect on April 1, 2017, require insurers: disclose previous year’s premiums on each renewal, so it can easily be compared with the new premium, consumers will be able to check their cover Are encouraged to do and shop for the best deal for everyone Renewal Identify the customers who are new to four or more consecutive Has renewed the scheme and encouraged them to give an additional message to encourage them to communicate this information in a way that draws attention to more information about the change on the FCA website Find out more: What can I do to review the home insurance company? It can be difficult to find your way around the insurance market, it is important to contact your provider to know your renewal date and to have enough time to shop around you. See our short video on how to find the best home insurance deal.
Source: Best Car Insurance UK