Consumers switch insurance for just €10 savings

STRUGGLING consumers are willing to switch insurance providers to save just €10 a year.

Previously people would only consider switching if it meant saving €50 or more annually. However a new trend has emerged among cash-strapped consumers, according to insurance specialist with getcover.ie, Louise Ledwidge.

She said a new wave of “tougher, price conscious and value-savvy consumers” has emerged from the recession with many consumers having now mastered “keen negotiation skills”. They are also prepared to go through contracts with a fine tooth comb to achieve cost savings, she said.

“We have noticed a threefold increase in calls in the last 18 months from consumers looking to renegotiate a better deal or restructure their insurance policies to produce a lower premium,” she said.

She said people are prepared to switch providers if the saving is around €10 to €20 a year, which wasn’t the case in the past.

“In addition, consumers are sufficiently knowledgeable not to take on large claims excesses for a relatively small reduction in their premiums,” she said.

Ms Ledwidge said today customers are asking questions they would never have asked up to 2007. They are asking insurance companies to throw in additional benefits on their policy and asking what they could eliminate on their policy to reduce premiums.

Chief executive of the Irish Brokers Association, Ciaran Phelan, said the purse strings have tightened considerably for households and insurance premiums are one of the biggest and most important expenditures.

“Many households spend in excess of €4,000 per annum on a variety of cover, often overpaying for policies that can be got for considerably less elsewhere, he said.

He said a thorough review of protection policies could result in significant savings.

Meanwhile, Ms Ledwidge said of all insurance types car insurance is the one worth shopping around for.

“Car insurance is one of the most notorious of all covers for price variation. Premiums quoted for individuals can vary by hundreds and sometimes thousands from one provider to the next,” she said.

“Be sure to get any discounts you are eligible for. Ask about any ‘advanced driver’ or other special discounts,” she added.