Insurers have been making a fortune of insurance renewals for years, by raising the annual cost
when your premium increases. But now the tables have turned – and you could save a packet or
even claim compensation if you’ve been ripped off. Here’s how it works.
Every year, if your home, car or other insurance policy comes up for renewal chances are the
price will have gone up.
Insurers are supposed to tell you what the price was last year, so any increase is clear. They’ve
had a year to do this but loads of insurers aren’t sticking to the rules.
Insurers have always argued that the way they work out premiums is complex and secret – but
then offer new customers much lower rates, which blows that argument.
For years, this practice was much criticised but allowed to continue – though Resolver has been
calling for unfair pricing to end for years now. However, thanks to this, campaigns in the media
and even the financial ombudsman changing its approach, ever-increasing premiums are finally
being clamped down on!
If you’ve been overcharged for staying loyal you can ask your insurer to put you in the position
you would have been in as a new customer. So you could save a big chunk of cash.