Watchdog Proves it Pays to Compare Car Insurance
A recent investigation by the BBC TV programme Watchdog has revealed that insurance companies might not be rewarding their customers for loyalty. The popular pricing model for premiums appears to offer better deals to new customers in an attempt to bring in new business. Car insurance comparison site Tiger.co.uk investigated.
Increases in the price of motor insurance were widely publicised during 2010 and the first half of last 2011 and Tiger Watch, the price watch monitor produced by Tiger.co.uk, has recently shown that inflation could well be returning to the market once again in 2012. With this in mind, it has come as a shock to some motorists to hear that many insurers could be offering cheaper car insurance quotes for the same level of cover to new customers compared to the renewal prices offered to existing customers.
According to Watchdog many drivers simply resign themselves to accepting their renewal quote, when in fact they should always compare car insurance as cheaper deals can often be found. In one example featured in the programme a shopper was quoted £250 more to renew his existing policy than he was offered by the same insurer for the same policy when he ran a quote through a comparison site.
Andrew Goulborn, Commercial Director for car insurance comparison site Tiger.co.uk commented: “Many different factors can affect a motorist’s insurance renewal rate including perceived risk and claims history. Most of our insurance partners are committed to providing drivers with the best possible deal and place value on both existing and new policy holders alike. As highlighted by the Watchdog programme however, it usually pays to shop around. Somewhat surprisingly, there are a fairly large proportion of motorists who automatically extend their existing policy at renewal. We always advise motorists to shop around and compare motor insurance deals before accepting a renewal or taking out a new policy as there could be significant savings to be made. We also advise motorists to make sure that they select a policy based on their individual driving needs and not simply on price alone.”