Insurers urged to show old premiums

CAMPAIGNERS are urging insurers to show last year's premium alongside any renewal quote they give to prompt people to shop around more for a better deal.

Research by Which? found that nearly nine out of 10 (85%) people would find it useful to have the amount they paid last year on a renewal letter for any type of premium such as car or home insurance.

Two-thirds (68%) of those surveyed said having last year's premium would prompt them to look for a better deal with other insurers, and around the same (64%) say they would be more likely to haggle for a discount with their current insurer if they had this information.

Which? has launched a "don't pay a premium campaign" and is calling for insurers to explain any differences between last year's and this year's renewal quote.

It also wants insurers to provide customers with their number of years of no-claims-bonuses and make sure renewal letters are received by the customer at least three weeks before the insurance is due to renew.

Recent research by Which? found that people who haggled and switched providers on their car insurance managed to save an average of £131 on their renewal offer.

Which? executive director, Richard Lloyd, said: "Our research shows it pays to shop around when renewing your insurance, and that's good for all consumers too as it helps keep the market competitive. But it's not easy to find a good deal if you don't know what you paid last year.

"People have told us that if insurers made it easy to find out the cost of their old premium it would prompt them to look for a better deal or haggle for a discount. So we're asking people to support our campaign calling for all insurers to be more upfront when they send out renewal notices by showing customers the premium they paid last year and explaining any differences."

More than 2,000 people from across the UK took part in the Which? research in February.

Huw Evans, director of policy at the Association of British Insurers (ABI), said: "Insurers agree that it is important for customers to take advantage of a competitive insurance market and shop around and most already do - 73% of customers have shopped around for motor insurance, and 75% of people shopped around for a home insurance provider.

"But renewal should never be just about price. Getting the right cover for your needs is vital. We look forward to continuing to discuss with Which? and other consumer groups how best to help customers make informed choices about the best cover for them."

By Vicky Shaw, Press Association