Haggling at renewal pays for motor and home insurance customers
The study by Consumer Intelligence found that 54% of drivers who phoned their existing insurer at renewal received price reductions, with 24% saying they were offered substantial cuts of more than a tenth.
Around 51% of homeowners who haggled with their existing insurer achieved a price cut, with one in five receiving a substantial reduction. On average just 27% of drivers and 26% of homeowners say their insurer would not negotiate.
However the research shows just 38% of drivers and 36% of homeowners always phone their insurer to query the renewal quote missing on potential savings and avoiding the need to switch to competitor.
Ian Hughes, chief executive of Consumer Intelligence said: “Haggling with motor and home insurers clearly pays as drivers and homeowners who make the effort to negotiate have found.
“Insurers are generally receptive to renewal premiums being queried and will offer reductions to try and keep customers and the savings can be substantial at more than 10%.
“The benefits of switching are not always obvious as generally customers prefer to stay loyal and indeed our research shows that it would make more sense for insurers to offer their best price straight away rather than haggling.”