Car Insurance - Fixed 3 year Price -a good Deal?

Curiojb

I'm just in the process of renewing my car Insurance & have been given the option to fix the price for 3 years. It's a pay monthly & you can cancel at any time. I have negotiated a further reduced price than my original quote. Just wondering if this is a new idea and if there are any pitfalls that I haven't discovered? Thanks ☺️

daveyjp

Pitfalls? All down to small print and the thought of why has this not been done before?

Off the top of my head.

Is it three consecutive annual policies, or a three year policy?

What happens if your car is written off? Do you have to pay the full three year premium?

What if it isn't written off and the process for a claim is terrible but you are stuck until the end of three years?

How are the following dealt with?

Treatment of no claims bonus

Change of vehicle

Change of policy needs or cover mid term

No1_Anorak

The only obvious pitfalls, I can see form what you have stated, is that the price-fix, will only be a 'price fix' if you keep the same vehicle for the next three years, as changing the vehicle, there would no doubt be a different amount to pay.

Other things to consider, if you can exit easily without penalty, then make sure you still do a price comparison every year in the month or so before, what would normally be you renewal date, as in the last couple of years prices have been dropping for insurance. My example being, I was offered a decent drop this year by my existing insurer [with a note in my renewal letter saying that was their best offer, so do not bother to phone to try and get a cheaper quote] but I still used the comparison sites recommended on MSE and low and behold I got better cover for about £80 cheaper than my exsiting insurer. I take it you have checked all the comparison sites already?

MyRealNameToo

https://forums.moneysavingexpert.com/discussion/6656087/car-insurance-fixed-3-year-price-a-good-deal

You need to read the terms, if its a fixed price rather than a price cap and the rest is as you say/ how most operate then the only "risk" is that they quote you the identical price next year as per the fix when they would have quoted you a lower price because rates have dropped had you not fixed it.

It's the same as energy fixes, sometimes you win, sometimes you lose.

If its a price cap then thats better as the rate can still fall but you have a max it won't go above.

Note that these caps/fixes normally also specify it's nulled if you make a claim or a change to a policy. I know with a prior client the percentage of people who actually get the fix is relatively modest as people move home, change car or have a prang etc.

Curiojb

Platinum Club 3-year price fix
3 years of no finance costs or interest
charged on the monthly payments of
£**.** with no deposit to pay upfront.
Why choose us?
•
FREE breakdown membership
•
FREE motor legal cover
•
Additional policy discount
•
24 hour breakdown & claims service
•
Uninsured driver promise
•
UK based contact centre
Your motor insurance for registration ANYCAR is due for renewal.
Dear Mr ….
As one of our most valuable customers – you’re now eligible to join our exclusive Platinum club. In addition to joining the club, we also are happy to let you know that we can fix your price for 3 years if you want to choose that option.
Here’s a summary of your new Platinum club policy options below:
Rolling monthly contract
Reduced charges
FREE breakdown and legal cover
Access to a dedicated team
Fixed price for 3-years

*Price reviewed every 3 years
To fix this price for 3 years you can do this within your portal www.portal.
Note: This is a 3-year price fix and not a 3-year contract, so you are still able to leave at any time throughout the 3-year period.

• Please be aware if you do make a claim during the 3 year price fix policy, your policy will be reinvited at the end of that policy year (please be aware there is no guarantee that your policy will still fall into the insurers criteria when we reinvite your policy). We also have the right to cancel the 3 year price fix early and place you with a new provider if you decide to make a change to the policy that falls outside the insurers criteria.
  

MyRealNameToo

So yes the main risk is that prices fall but you continue to be offered your old price under the fix.

Curiojb

Thanks for this, I was told that I could request to cancel at any time, if I wanted. So if I wanted to do a price comparison I could set up a new policy at any time I guess.

My quote never seems to get cheaper by the way!

dunstonh

Three of my cars have renewed or about to renew this year and two of them came in with lower premiums and one slightly increased.

A fix gives you certainty but it doesn't mean it will be the cheapest option.

MyRealNameToo

https://forums.moneysavingexpert.com/discussion/comment/81891600#Comment_81891600

Depends how their systems are setup, I know at least one firm (a stable of brands) where it will identify an existing customer getting a new business quote and so automatically present them with the same price as their renewal rather than actually rating from scratch.

Obviously you could shop somewhere else and they may be cheaper but it could be they'd have been the cheapest had you not had the fix but you can't get the cheaper price because of the fix.

No idea how old you are/ how many years of buying insurance you have under your belt but any quick google shows average premiums go up and down over the years and thats even before adjusting for inflation.