Nationwide Home insurance renewal ripoff!

wife-spent-it-all · 1 September 2011 at 12:55AM

I have a mortgage with Nationwide and for years we have had our buildings and contents insurance with them too. In July they sent me the renewal notice and at the time I was busy with other stuff so it got put to the bottom of the pile again just like it has every year before.

Tonight I found the renewal letter again whilst looking for something else and I decided to see how good the renewal quote actually was.

For buildings and contents cover my current 12 month policy with Churchill via Nationwide is £570. The comparision sites are quoting upwards of £270 - thats a difference of £300 and I am absolutely stunned :eek:

I've tried to get the cover as identical as possible for comparision purposes and even a quote from Churchill via MSM is coming up at £320 and the AA is £285.

I guess i'll be cancelling this policy once I can get a new one setup unless anyone can explain why the extra 250-300 quid is worth spending.

InsideInsurance · 1 September 2011 at 9:07AM

Cannot say what is worth spending for your personal circumstance but ensure that you look at the levels of cover received as these vary greatly between insurers.

If you are going to switch and if your doing it mid term, remember to factor in the cancellation fee from your insurers and that your mortgage provider may also charge an insurance switching fee - though some insurers will refund this fee to win your new business

dunstonh · 1 September 2011 at 10:13AM

For buildings and contents cover my current 12 month policy with Churchill via Nationwide is £570. The comparision sites are quoting upwards of £270 - thats a difference of £300 and I am absolutely stunned

Are you sure you are comparing like for like? Bank & building societies tend to include all options (e.g. accidental damage, personal possessions cover etc).

A common error for those shopping around is to leave the options off and that accounts for such a big difference.

dwsjarcmcd · 1 September 2011 at 11:38AM

Aside the other comments, there is a very simple reason while all banks and building societies Home insurance is more expensive. Commission. They get paid the very top rates of commission and rely on customer apathy in that these premiums are usually included with the annual statement and they won't notice!

On dunstonh's point above, he is of course correct and if you need a Rolls Royce policy then that is fine but many don't and still pay for cover they don't need. Even then, I am pretty certain that 'like for like' cover can still be bought considerably cheaper than through pretty much any bank or building society when it is related to a mortgage!

mikey72 · 1 September 2011 at 12:06PM

wife-spent-it-all wrote: »

............ In July they sent me the renewal notice and at the time I was busy with other stuff so it got put to the bottom of the pile again just like it has every year before.....................
.......... can explain why the extra 250-300 quid is worth spending.....................

Ian

It's not.
You just got caught by the usual auto renewal loyalty penalty.
Up to 100% extra on the standard premium in the hope you miss it.

talulah25 · 1 September 2011 at 1:18PM

Going off on a tangent here but my MIL was recently sold a Nationwide home insurance policy, the teller in the building society recommended £16,000 contents for a large 3 bed house, MIL works for an electrical retailer so they have every gadget going and expensive furnishings. This is what happens when you target people to sell products they know nothing about!

unsure · 27 September 2011 at 3:10PM

I've just had a similar experience with Nationwide, after years with no claims the cost of renewal has jumped to £750 (nearly 30% increase). A quick check on the comparison sites recommended by MSE suggests I can get the equivalent cover for around half of that price! To make matters worse if I go on the Nationwide site I see they are offering new customers an automatic 25% discount which is unavailable to exisiting customers. I phoned them up and was told "that the best we can do." Since they are going to charge me extra for my many years loyalty and claim-free history I'm cancelling and will go elsewhere. They must think their customers are mugs...hopefully others will also prove them wrong by doing likewise and insuring elsewhere!

unsure · 27 September 2011 at 4:00PM

Sorted, a single phone call and £350 better off for slightly enhanced buildings and content cover. Bye Bye Nationwide!

Nationwide Home insurance renewal ripoff!

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