Most people know that almost all insurance companies now have a policy of giving the best deals to new customers. To get the best deal on car or home insurance, you need to check the rates and perhaps switch almost every year.
It’s a terrible business model and one most of us hate. But price comparison websites mean it’s not that hard to find a better deal and switch.
However, there’s one large sector of the population who simply don’t do this: the elderly. Many have limited computer skills and few realise that the insurance companies see them as patsies to be exploited.
We’ve heard many stories, and the newspapers have printed them too, that run on the following lines. Widow Mrs Jones has faithfully renewed her home insurance automatically every year for the past decade, just trusting the insurance company to charge a fair rate. As part of a financial Spring-clean, her daughter decides to review all her mother’s bills. She has a purple-faced fit when she discovers that mother is paying £900 a year for her home insurance whereas she pays just £200 on a similar home.
Daughter spends half an hour at the computer, switches her mother’s policy to one costing £200 a year and feels:
- 1pleased to have saved mother £700 a year, which will pay for a few outings
- 2furious with the contemptible insurance company which callously exploited its loyal customer.
Do check any elderly relatives’ home insurance! But if they’re over 90, a recent royal experience will tell you why you shouldn’t expect to be able to make similar savings on their car insurance.