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Insurers urged to revamp renewal notice

A costs sign cut in half20/2/14

By Tom Donnelly

Insurers should show last year's premium alongside any renewal quote, says consumer rights group Which?

This move would allow customers to shop around for a better deal on car and home insurance, it says.

New research by Which? found that 85 per cent of people want to see the amount they paid for cover last year appear alongside their new quote on car and home insurance premiums.

Around 68 per cent would have looked around for better deals if they had last year's premium printed alongside their new quote, while 64 per cent would haggle for a discount.

'Don't pay a premium' campaign

The calls have been made as part of Which?'s "don't pay a premium campaign", which aims to convince the insurance industry to show customers their renewal quotes alongside last year's.

Which? also wants to encourage insurers to provide customers with a tally of the number of years of no-claims-bonus they have built up.

The consumer rights group is also calling on insurers to make sure customers receive their renewal quotes at least three weeks before the policy expires.

Currently, renewal notices are typically sent out between 21 and 30 days before a customer's cover is due to expire.

£131 by switching insurers at renewal

Which? found that customers who haggle or switch providers manage to save an average of £131.

Richard Lloyd, executive director at Which?, said: "Our research shows it pays to shop around when renewing your insurance.

"That's good for all consumers as it helps keep the market competitive. But it's not easy to find a good deal if you don't know what you paid last year.

"People have told us that if insurers made it easy to find out the cost of their old premium it would prompt them to look for a better deal or haggle for a discount.

So we're asking people to support our campaign calling for all insurers to be more upfront when they send out renewal notices.

Insurers can do this, Lloyd said, "by showing customers the premium they paid last year and explaining any differences".

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