The Financial Conduct Authority (FCA) introduced a significant regulation in 2021, prohibiting insurers from charging existing customers more at renewal than they would for new policies. Despite this, many families, including one author's, have faced substantial increases in insurance premiums. Over recent months, the author's family has seen their home insurance premiums rise by 25%, while car insurance costs have surged as well. In response, they embarked on a mission to find more affordable options, resulting in significant savings.
The author's home insurance premium experienced a notable increase from £324 to £407. Confronted with this hike, the author diligently explored alternatives and discovered a more economical policy with Policy Expert, priced at £236. However, they ultimately chose Tesco Bank's policy for £309, which provided the same coverage as the previous plan. This decision was part of a broader strategy to mitigate the impact of rising insurance costs on the family's finances.
The author's mother faced an even steeper climb in her car insurance premium. Her previous insurer, LV=, proposed a renewal price of £1,242, more than double the previous year's rate. To tackle this, the author turned to Confused.com, a price comparison website, to explore potential savings. The search yielded a significantly cheaper policy with Co-op Insurance at £725. This switch represented a substantial saving of £500 compared to LV='s renewal quote.
In addition to these efforts, the author's home insurance policy with M&S Insurance was set to increase at the beginning of August. To counteract this rise, the author decided to switch to Halifax, securing a policy for £240 a year. This move provided a modest saving of £10 compared to their previous policy but demonstrated the importance of consistently evaluating insurance options.
Beyond home and car insurance, the author also sought more affordable coverage for their family's two sub-£1,000 bicycles. Initially insured with the RAC, they found a cheaper alternative with another company, further reducing their overall insurance expenses.
The Association of British Insurers (ABI) reported that average motor premiums rose by 34% last year. Given these trends, families across the UK are feeling the financial strain. Commenting on this situation, an ABI spokesperson emphasized the importance of shopping around when it comes to insurance:
“The specific risks insurers cover, and sometimes the products they offer, may change from year to year – so we would always recommend shopping around when looking for insurance.” – An ABI spokesperson
The author's mother's 2019 Fiat Panda remains in excellent condition and is regularly used as part of the family's daily routine. Despite its good condition, the significant increase in car insurance premiums prompted the author to seek better deals. This proactive approach resulted in noteworthy savings and underscored the necessity of remaining vigilant amidst fluctuating insurance costs.