Insurance renewal – we all know we should shop around but sometimes inertia, lack of time and life gets in the way. This client did take some time and saved himself £4000 as a result.
Here are five lessons you can learn from his experience.
Straight off I should say that our clients are not the typical insurance customer. They generally have a prestige car (or two), properties worth at least £1million and often expensive jewellery and art to insure. To protect a portfolio of such high value inevitably costs a little more in premiums, but as this case shows there can be huge savings to be made too.
Our prospective client, Mr X, was coming up for renewal and asked us to look at his insurance. It was a combined quote to cover his two prestige cars, buildings insurance for a high value property, contents insurance - including fine art and jewellery and annual travel insurance.
Lesson 1. More often than not, it makes sense to combine all your insurance policies. The total premium usually comes down, cover is more comprehensive and it has the added benefit of giving you one renewal date each year.
His current broker had already sent him a quote, which the client didn’t reveal to us.
The interesting thing about his existing broker was the fact he’d made Mr X think he’d shopped around and reviewed the market and that the existing policy was still competitive. Perhaps he hadn’t been so blatant in his wording but he certainly gave that impression.
In fact the broker was tied to the insurer and wasn’t in a position to shop around.
Lesson 2. Ask your insurance broker “Are you tied to any insurers or are you whole of market?” and ask them to put it in writing.
Being prudent, Mr X asked LIFT-Insurance to give him a quote to check the competitiveness of his broker. He sent over his existing schedule and statement of fact but blacked out the premiums.
Lesson 3. For a truly competitive quote, don’t tell the broker what you’re currently paying.
By sending us his existing paperwork he saved himself a lot of time. There are sometimes one or two details to clarify over the phone but it’s much less time-consuming for you the client. In this situation, the client simply scanned and emailed his documents which then gave us enough information to quote.
Lesson 4. Sending your existing paperwork makes the process much faster.
Our review of the market came up with two policies that we considered competitive and more importantly had the same or enhanced cover.
When we compare quotes we’re not just looking at the premiums. The extent of cover is a deciding factor and as a minimum we would look for like for like cover.
The existing contents cover of the client was £400k but the new policy gave £1.6 million worth of cover. Now it’s unlikely that the contents of his property will increase dramatically in value within the year, but if your contents insurance only takes into account your existing contents, an expensive purchase or two could easily push you over the limit of your cover. This large buffer meant our client has no need to consider this and he won’t incur any extra insurance costs for future purchases.
Lesson 5. It’s not just about the price.
We sent Mr X two quotes but recommended one. We still didn’t know how much he’d been quoted by his existing broker. The policy he decided on cost £6800 for the year. The ‘competitive’ quote from his existing broker? £10,800.
Saving our new, very happy client, £4000.
If you’d like a free review of your insurance policies, contact LIFT-Insurance on 0161 929 2626 or email@example.com
There’s no pressure to buy from us and the review can usually be done with your existing documents.
We’re independent brokers which means we can review the whole market. Our fees are paid in commission from any policies we sell and these are always made clear to you.
LIFT-Insurance is an appointed representative of LIFT-Financial