Just got a renewal quote for my van. 12 years NCB, N5 post code, VW T6.1, 22 plate, T30 DSG, 12k miles, solely used to move my bikes around, no business use at all. BeMoto van insurance renewal £806 5 mins on Compare the Market £569 Which got me thinking: Does relying on customer inertia pay off? 2020 FCA Report: "General Insurance Pricing Practices" study 12 million consumers paying over £1.2 billion more for their insurance than if they switched Customers who stay with the same insurer pay an ~25% more than new customers 64% of people surveyed didn’t switch their car insurance provider in the previous year CompareTheMarket Report (UK) – 2021 40% of consumers admitted to not comparing insurance quotes before renewal GoCompare’s 2022 Insurance Switching Survey: 50% of consumers had switched car insurance in the past year, found better value and cheaper premiums as the main reasons 42% of drivers said they just renewed their policy without checking alternatives Seems relying on customer inertia does pay off.
It shouldn't any more, but you can bet some firms won't have taken heed. A good overview of General Insurance Pricing Practices (GIPP): https://www.gocompare.com/insurance/gipp/ And the painful detail about the success/remedies, which I admit I haven't read: https://www.fca.org.uk/publications...-general-insurance-pricing-practices-remedies Small snippet: Our reforms were effective in reducing price-walking practices. Prices for existing customers remained stable in home and rose only slightly in motor, despite high inflation in recent years. Prices for new customers have increased in both markets to reflect risk more appropriately.
