Saturday, June 27, 2015

TARTING UP PICK AND MIX

The home insurance renewal offer has gone up in price, (considerably) from last year  "in line with the cost of living and inflation".  Uhm, did I read that correctly! As I recall, we had a miniscule amount of time when we were sitting at deflation, other than that, we are constantly being told that the cost of living has gone down, the global economy is not so buoyant either and that the Bank Of England base rate has remained at a steady all time low over about three or four years.  



I phoned three insurance representatives who insisted on babbling through verbal pro-formas, in the nicest possible way, expecting me to absorb the data they have visible and I do not. Links to policy summaries and policy wording would balance up the odds.

Knowledge Is Power
The best deals for utilities and insurances are to be had as new customers. Inertia is expensive. Loyalty has become a delightfully old fashioned concept.  I'm sure this must have led to the development of a nation of economic tarts. This week I have taken two major 'tart' decisions and now, I have spent hours making home insurance comparisons online. Best prices mostly reflect base line insurances. Watch the prices jump and the exclusions pop up as you add extras.  




The comparisons show that most companies are charging the same level of compulsory excesses for major and structural risk, in addition to any voluntary excess. The more excess you volunteer to pay, the more the premium reduces. Variations arise in the quality of 'extras' and exclusion clauses. This is where the customer would benefit from reading what's on offer. It looks like a couple more phone calls have to be made. I am beginning to to feel inertia setting in.  It's not easy being an economic pick-and-mix tart.














6 comments:

keiko amano said...

ZACL,

You're an excellent consumer as always! I agree with
"Loyalty has become a delightfully old fashioned concept". Companies do not give us discount by sticking to them. They give discount to new customers and in Japan, they even give them gifts. My cousin complained to her newspaper delivery company and received a gift.

By the way, I love all your photos!

ZACL said...

Hello Keiko,

It is lovely to hear from you. Thank you for the compliments. :)

Some companies offer 'money off' say, a £50 bonus, when you buy their product. It's cute psychology, only useful to me though, if the product is what I want and the final price is competitive. I was offered vouchers for a range of shops I would have to travel hundreds of miles to.... The vouchers were not enticing and they would not have been even if, I could have used them.

flightplot said...

I sympathise, and agree that they rely on customer's inertia when it comes to renewing rather than changing.
I'm lucky in that I have a friend who has always worked in insurance and has often pointed me in a better direction. Flighty xx

ZACL said...

Mr F, I would love to have an available friend with insider insurance knowledge. I have deleted a few that don't come up to scratch. This year's renewal research suggests there may be a charges/price cartel at work for similar or same insurance requirements. Ho hum.

Snowbird said...

I sympathize, so often so many companies are constantly trying to rip us off, I'm glad that you have your eye on the ball, they won't pull a fast one on you!
I did enjoy your pics, especially of those wonderful tea cosies!xxx

ZACL said...

Did you have a good break Snowbird?

The owner of a wee cafe here makes tea cosies for various size pots that she uses for her customers. On a few, accessories, such as bees, butterflies or, a flower, have disappeared!

I eventually signed up again with my current provider, only after going online for a new customer quote, getting a much better deal than the quote I got for renewal. The cost has still increased, but by at least 25% less than it was. Believe it or not, the deal was highly competitive at the revised premium.

It is time-consuming, ever so tiring, going through the comparison of like- for- like, or close. For the first time, I have been asked if I wish to buy a no claims bonus by several companies, including the one I have used. It all adds up. And I did not want it......digits well and truly crossed. :)

Xxx