Announcement Made That Should Benefit Existing Customers

Many motorists will be aware that some car insurance providers offer cheaper premiums to attract new customers that may be at the expense of existing policyholders who end up paying more for their cover. Well, an announcement has recently been made that should be of benefit to exiting customers.

The British Insurers Brokers’ Association (BIBA) and the Association of British Insurers (ABI) have produced some Guiding Principles and Action Points that should help existing policyholders who have found themselves paying higher premiums to insure their motor vehicles than new customers. It is expected that those members of the previously mentioned organisations will make sure that when assessing how much to charge policyholders that existing clients are not penalized. There are a number of other things covered in the Guiding Principles and Action Points that you may wish to study. The above organisations are to report on how the above is working in a maximum period of two years.

Even though the above is being introduced motorists should still continue to shop around for their cover whether he or she is a new customer or a long-standing one as a better deal may be available from another provider. There are so many providers of motor insurance here in the UK that has got to be good news for the customer as, potentially, it provides greater choice. Unfortunately, too many people merely accept the renewal premium they are notified about and do not bother to see if they can obtain the cover that they require but at a lower premium from another insurance company.

Shopping around for alternative motor insurance can be done in a variety of ways such as by contacting your high street insurance broker, calling into the banks, building societies or the Post Office in your local town or city or going online and using the services of the likes of a price comparison website.