End of Loyalty Penalty Doesn’t Mean End of Switching, Says Go Compare

As the government seeks to end the high premiums charged for loyalty on car or home insurance, which hits customers who prefer not to shop around every year, Go Compare sees life in the comparison site model yet. Here’s the word from Lee Griffin, one of the founders of GoCompare;

“High charges and inflated renewal pricing aren’t going to be fixed overnight. Consumers are right to keep an eye on these developments, as they could bring very real change in future. But people mustn’t expect Government and regulatory interventions to save the day. They still need to focus on looking after themselves by shopping around for the best possible deals, reading the small print and questioning anything that looks too good to be true.

“This latest Government intervention demonstrates that the loyalty trap is very real and costs people, collectively, billions of pounds each year. It’s time for people to break this cycle of overpaying. New customers get the best deals, so the mantra to live by is ‘always be a new customer’.

“While it’s a positive to hear the FCA’s market study into insurance pricing practices in home and car insurance is ongoing, we will be looking forward to the interim findings published in the summer, which will hopefully be the start of a fairer future for insurance pricing.”

Top tips from GoCompare to get the best insurance deals:

Remember that if you do nothing at renewal time you will likely be auto-renewed, and while this ensures you’re still covered, you will undoubtedly pay more than you need to for the privilege,

NEVER accept your renewal quote without first checking that the price you are offered is competitive – even if your insurer was the cheapest last year,

Give yourself time to review your cover – note the renewal date in your diary and shop around at least a week before your policy renews to get the best deal,

Compare prices AND check the small print. Make sure you’re making like-for-like comparisons and understand all the charges, any penalties, exclusions and terms and conditions you will be required to meet.

Customers switching and saving with GoCompare could save £227.60 on their car insurance and £88.47 on their home insurance.