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1 min read
19th December 2018

Insurers make money from people’s loyalty

The Citzens Advice has issued a super complaint which argues that loyal customers are being “ripped off for:

The Citizens Advice estimate that customers are being ripped off to the tune of over £4 billion a year as a result of their loyalty.

Michael Masterson at Cover4Insurance says “we would always encourage people to shop around for the best deals. We are confident that we are more than competitive in the market for the products we offer. We have also teamed up with a comparison site so that we can offer our customers the best deals on their Car Insurance, Home Insurance and Energy as we are always looking at ways where we can add value to our existing customers as for too long, they have been taken for granted by the industry”

The research by Citizens Advice “found that across 5 essential markets (mobile, broadband, home insurance, mortgages and savings):

  • British consumers lose £4.1 billion a year to the loyalty penalty.
  • 8 in 10 people are paying a significantly higher price, in at least one of the markets, for remaining with their existing supplier.
  • The loyalty penalty is, on average, £877 per year - equal to 3% of the average household’s total annual expenditure.”

We would advise that as your contracts fall due for your renewal that you don’t just renew with your current provider you compare the market for your insurances.

We have linked with a comparison site so that you don’t have to do all the work just fill out one form and let us do it for you. To see how much you can save click on the links below:

Its not just individuals that will be being ripped off by these practices but businesses as well. In order to save you company money you should also compare your insurance policies

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