Save Thousands: A Car Insurance Renewal Hack
Just five minutes of your time on the phone with your insurer could save you hundreds of dollars on car insurance renewals. Find out the car insurance renewal hack that companies do not want you.
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Car Insurance Costs on the Rise: A Shared Experience
Each year, car insurance premiums get bigger, and every year many drivers simply accept the renewal quote without care. Insurers rely heavily on on their customers “inertia” and the expected complacency that comes with policies that auto-renew.
In their recent report, Defence & Protection suggests that if policyholders spend just five minutes on the phone with an insurance agent, they could potentially save hundreds of dollars on their insurance.
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The Hack: Call Your Insurer Before You Renew
It is deceptively simple; the hack is to simply call your insurance company before you accept your renewal;
1. Compare quotes from competitors online using aggregator websites.
2. Call your insurer’s customer service or retention team.
3. Kindly inform them that you have found cheaper quotes, if they will match or beat the price.
💡 “Retention” discounts are often not advertised by many companies, but are available when negotiated.
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Real Life Scenario
I recently spoke with a policyholder in the UK. In their insurance renewal, they were about to pay a renewal premium of £634. Only after a very short call that referenced some competitors’ offers, the respondent managed to get the renewal price down to £544—a difference of £90 – for five minutes of time!
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So why does this work?
1. Regulatory Imperatives – Several countries have introduced regulatory measures that disallow “loyalty penalties,” making it well-defined that insurers must offer fairer and just pricing.
2. Competition – Insurers know that you can “chop and change,” so when they can discount your plan instead of losing your business, they will!
3. Customer Value – Many long-standing customers are offered ‘hidden’ discounts for having the courage to push back.
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Insurance Hacks to Save you Money
1. Bundle your insurance policies – Whether it’s car, health or home insurance, bundling will often have ‘multi-policy discounts.’
2. Ask for Low-Mileage Discounts – If you have low mileage, tell them!
3. Increase Your Voluntary Deductibles – Higher deductibles on the policy will reduce your premium.
4. Install Theft Deterrents (like a security alarm) – Often, these are eligible for reductions in premium.
5. Pay Annually and not monthly – Then instead of adding interest to the monthly instalments, it will be paid in full allowing you to save.
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Final Words
Insurance companies are betting on you not saying anything! In just one phone call, you could get the money you are owed back and pay what is fair instead of more than what you should be paying. Next time your renewal letter arrives, pick up the phone and don’t sit silent – your renewal calls are completely negotiable, and often result in huge savings. If you like this Car Insurance Renewal Hack, comment below and subscribe for free for more such a hacks on Insurance.