You don’t need to be a Meerkat to realise that it is always best the check the market before accepting your existing insurer’s renewal quote. As the Mail on Sunday recently reported with the case of an 85-year-old gentleman who had renewed his home insurance with Aviva for many years, renewing can leave you seriously out of pocket. For his ordinary three bedroom terraced town house built in 1935 he was paying a massive £912 a year for home and contents insurance.
When he first insured with Aviva in 2001 his premiums were just £220. Aviva acknowledge that across the insurance industry quotes for existing customers are normally higher than those for new customers as they often include offers or large discounts which vary each year.
It is disgraceful that people are still being taken for a ride by large financial institutions. The above insurance would be less than £300 with nearly every insurance provider. Even Aviva quoted £269 quite a big drop when his daughter threatened to cancel the policy and move elsewhere. He also got a cheque for £300 by way of an apology – no doubt after 12 years of over charging Aviva can well afford to do so.