Looking to save money in any way possible? Haggling can still be an effective way to get a better insurance deal – even though new rules have been introduced which ban insurers from charging a ‘loyalty penalty’ to their existing customers – research has found.
Consumer champion Which? carried out a survey of its members, which indicated that those who haggled with their current provider or switched could still potentially make significant savings.
In January, the Financial Conduct Authority (FCA) put new rules in place banning car and home insurers from offering different prices to equivalent new and renewing customers.
Insurers have also been finding their own costs are increasing, which is putting an upward pressure on the costs for customers. Supply shortages have been an issue, as have pricier repair costs.
But if you think you could – or should – be paying less, it may well pay off to do your research and see what else is out there.
“With a cost-of-living crisis squeezing millions of household budgets, most of us are on the lookout for ways to save money,” says Which? Money expert Danielle Richardson.
“When it comes to renewing your insurance policy, you should always check the market to make sure you’re getting the best deal. If you spot a better rate elsewhere, quote the price to your insurer and see if they can match it.
“You could also try haggling, which insurers remain receptive to,” she adds. “Make sure you have the details of other insurers’ rates and the price you’re currently paying to hand before you contact them.”
While haggling may come naturally to some, others may feel a bit more tongue-tied when knowing what to say to their insurer.
Which? has some suggestions for four things you could ask, to help get the ball rolling.
“Which? research found that haggling is still an effective way to grab a better deal and when doing so, it pays to ask four main questions,” says Richardson.
“If the insurer’s rate has increased, first ask if they can explain why. Second, ask if they can do any better. Bring the most competitive deals you’ve found from other insurers, and thirdly ask if they can match them – or at least come close.
“Finally, if these fail – and you think you’ll switch – explain that you plan to leave and ask if there’s anyone you’ll need to speak to about cancelling.
“In some cases, cancellation departments may be able to offer price reductions to retain your business – even if you’ve been refused a discount earlier.”
