Current premium to be disclosed at renewal from 1st April 2017 onwards

OnanTheBarbarian

http://www.insuranceage.co.uk/insurance-age/news/2467565/fca-gives-1-april-deadline-for-renewal-transparency?utm_medium=email&utm_campaign=IA.Daily_RL.EU.A.U&utm_source=IA.DCM.Editors_Updates

TrickyDicky101

This is good news.

rudekid48

TrickyDicky101 wrote: »

This is good news.

Why? All seems a bit pointless to me. The people who currently shop around every renewal will continue to do so and the people who can't be bothered to will still be the same.

It's not as if last years premium is a secret - it's all over the policy docs/schedule.

I really can't see why anyone thinks that this is a big deal....

rs65

rudekid48 wrote: »

I really can't see why anyone thinks that this is a big deal....

Agreed. All they are doing is telling you something you know.

What would be good would be more transparency about how the premium is arrived at - showing the value of NCB, year one discount etc.

Morph4610

and even more confusing if you've changed your car or address in the year

TrickyDicky101

rudekid48 wrote: »

Why? All seems a bit pointless to me. The people who currently shop around every renewal will continue to do so and the people who can't be bothered to will still be the same.

It's not as if last years premium is a secret - it's all over the policy docs/schedule.

I really can't see why anyone thinks that this is a big deal....

Well, I think there are some people that assume (incorrectly in most cases I'm sure) that their insurers won't be taking the mick on renewal. Yes, they're probably being lazy but maybe this will serve to give them the kick up the backside required to shop around.

Aretnap

rudekid48 wrote: »

It's not as if last years premium is a secret - it's all over the policy docs/schedule.

True, but I only bought my latest policy a couple of months ago and already I couldn't tell you what it cost (somewhere between £200 and £300 I think - can't be more precise than that).

If I really had to find out I probably could, but it would involve digging through old Emails and I really can't be bothered. More importantly, what good would knowing last year's premium actually do me? When I shop around at renewal time I'm interested in whether I can find a better deal than the one my insurer is offering me right now. It's not much help knowing what they were offering at some arbitrary time in the past.

I suppose that some people who might otherwise have accepted the renewal price without a grumble might be prompted to shop around if they see that there's a big increase on last year. On the other hand, at times when insurance prices are generally falling, someone who sees that his premium is much the same as last year might incorrectly assume that there is no money to save by shopping around - so it could potentially work both ways.

takman

It seems pretty pointless and a waste of effort to introduce silly little changes like these.

There are adverts all over the Internet, TV and Radio encouraging people to use comparison sites each year to get the best price. The kind of people who don't compare prices will be the same people who will look at the renewal price and if it has only gone up "a little bit" will happily let it auto renew.

I saw a thread on here not long ago where someone had got their renewal and it was a few pence cheaper than the cheapest price when they compared online, so they were happy!.
But they didn't ring them up and ask them if they can make it any cheaper!. So some people just arnt bothered with getting the cheapest price no matter how much you tell them!.

Fletch7

TrickyDicky101 wrote: »

Well, I think there are some people that assume (incorrectly in most cases I'm sure) that their insurers won't be taking the mick on renewal. Yes, they're probably being lazy but maybe this will serve to give them the kick up the backside required to shop around.

^^^this. Written in black and white in front of you that your premium has gone up by 60% will prompt people to shop around when they may not have done before. It may also stop insurers taking the mick quite so much on renewal now they will have to be more transparent.

No insurer wants the bad PR of a story in the daily mail of a little old lady with a renewal quote that has doubled, complete with picture of her looking sad with the letter in her hand.