House Insurance Renewal - What a joke!

hollie.weimeraner

I am currently insured with Nationwide and have just received my annual renewal which is dearer than last years.
As always I have had a look around and also carried out a renewal quote with Nationwide themselves.
The quote with Nationwide has come out £100 cheaper than the renewal and I also get an Amazon £30 voucher as well.
Just shows the importance of checking and don't automatically renew.

paddyandstumpy

A few things here.

Firstly, your policy is written by UKI under the Nationwide brand. UKI are about to lose that brand, so I suspect that they are offering lucrative new business rates to attract customers before they lose the brand.

Secondly, aside from the fact that Nationwide are going through this underwriter change, this isn't uncommon in the HH market. Insurers have to offer loss leading rates to attract new customers, in the hope that in years 2+ they will actually start making money from that customer. What you've experienced is usual in the market, it pays to shop around.

The one bit of caution I'd offer to the market is this; given this loss leading excercise is finite, always be wary and remember to shop around. However, remember by doing so; insurers will ultimately look to reduce the gulf between new business and renewal pricing by upping new business rates. In the long run don't be surprised if the current new business deals aren't available.

Thirdly and finally, most (not all) direct insurers operate on the same model of losing money on new business and offering renewal at the right rate.