Insurance Con

[JtB]

No wonder they named a certain insurance comparison website the way they did because I'm certainly confused. Last year I changed my home contents insurer and this year they increased the premium by 50%, so back to the insurance comparison websites to find a better deal. The thing is though, the exact same policy came up again roughly the same price as last year. So I'm going with the same policy and saving a bucket load of money by buying it through an insurance comparison website again rather than renewing it directly with the insurance company - that doesn't make sense to me.

 

[rockyraccoon]

Don't forget cashback websites.. more saving..

 

[ASC1951]

So I'm going with the same policy and saving a bucket load of money by buying it through an insurance comparison website again rather than renewing it directly with the insurance company - that doesn't make sense to me.

It's what economists call inertia pricing. Banks and insurance companies depend on it for most of their retail income. Most people can't even be arsed to pick up the phone or finger their mouse.

 

[asterix]

Most people can't even be arsed to pick up the phone or finger their mouse.

I'd like to finger my mouse. Little b*stard got in under the door. Now its hiding under the sink and comes out about 3 a.m. Spotted it trying to get into the flip-top bin so if it does it'll be history.

 

[mr_cellophane]

Do that with the car insurance.  Get a new policy discount every year 

 

[Headgardener]

Do that with the car insurance. Get a new policy discount every year

Does that mean that you don't get any no claims bonus if you start a new policy every year?

 

[Spinney]

Does that mean that you don't get any no claims bonus if you start a new policy every year?

No. You just have to provide your new company with evidence of your existing no claims bonus (usually written on the renewal letter - if not, your old company have to provide such evidence, they are not allowed to make transferring business away from them difficult).

Keep changing - keeps them on their toes!