Are you paying an insurance loyalty tax?

There are a number of reasons you may want to switch insurance providers. These can include but aren’t limited to:

• Policy flexibility and features: You may want to go with an insurer that will allow you to choose a preferred repairer or switch to a provider that offers a greater variety of policy options to suit your needs.
• Changes in your lifestyle: If your personal circumstances change, you may want to adjust your insurance policy to reflect new priorities. For example, you may have sold your vehicle, started a family or bought a new home.
• Price point: The cost of premiums can greatly influence a person’s decision when it comes to regular payments, such as those associated with insurance policies. Seeking value is sensible.

Be aware that your insurance policy may automatically renew if you don’t cancel or switch providers.

When it comes time to renew your insurance policy, it may be advantageous to do some research and examine what alternatives are available. Using comparison tables, such as those provided by RateCity, could help you to see how your current policy and premiums stack up against other options.

Some insurers do offer legitimate benefits to reward customer loyalty, such as a no-claim bonus. While often associated with car insurance, some home insurers also award these concessions to policyholders that meet claim-free insurance terms. For instance, insurers may offer up to a 30% discount if you haven't made a claim in five years.

If you’re considering switching to a new insurer and they also offer a no-claim bonus, you might be able to transfer your discount by proving your no-claim history from the previous insurer through a certificate or renewal letter.

What can happen if I don’t compare?

It’s vital to keep up with what you’re covered for and what gaps may exist in your current insurance policies. Insurers often update their terms and conditions for policyholders, meaning you might have thought you were adequately covered for particular incidents or losses but this may not be the case.

Certain events and incidents can void an insurance policy, so it’s crucial to be aware of your current policy details.

It may be sensible to compare the cost of your premiums from those you’ve paid in the past. Don’t be afraid to get in touch with your insurer and ask for a better price if you believe you can get a good deal elsewhere.

Many insurers offer special offers or discounts for new customers that could help you save money if you switch your service provider. You can also find bundled deals for all or some of your insurance policies at competitive rates.