How you can fight back against the insurance pirates... and save up to £1,000 on your home and car cover - in just 15 minutes.

Today Money Mail calls on all readers to fight back against the insurance renewal rip-off.

Nearly every insurance giant is quietly bumping up insurance premiums for loyal customers. In many cases quotes are doubling even though there has been no change in circumstances. 

But you don't have to stand for this. We want you to show insurers that the game is up, and threaten to leave unless they give you a better deal.

We've been inundated with letters from readers with fantastic examples of why it is worth doing. One reader managed to save £1,032 on his home insurance by shopping around for the first time in ten years. 

So what should you do next?

HOW TO SPOT THE ROLLOVER RIP-OFF

When your insurance is up for renewal, you'll receive a letter with your new quote for the year ahead. Your insurer will hope you read this and do nothing.

So check last year's premium is on your renewal letter.

Since April, insurers must tell you what you previously paid for cover so you can compare prices. If your premium has increased, call your insurer and ask why.

Don't be surprised if they can't give you a proper explanation.

Typical excuses at the moment are insurance premium tax hikes and the increasing cost of personal injury claims.

Make a note of anything you're told — and ask for a better deal.

It's not unusual for insurers to offer to keep your premiums the same when faced with the prospect of losing your custom.

But it's still best to shop around before you accept any offer.

You don't have to do this online, but, if you do have a computer, a price comparison website can be the easiest way.

After filling in a form — which typically takes 15 to 20 minutes — the website will generate a list of the best prices based on your individual circumstances.

You'll find all the information you need to complete these forms on the paperwork from your old insurer, such as no-claims discounts, or details about your home.

Be sure you are comparing like for like. For example, you may find the cheapest car cover deal on a comparison site requires you to install a little black box under the dashboard to monitor your driving — which you may not want.

With home insurance, make sure the level of cover is the same. For example, are you still covered for expensive jewellery and valuables outside the house? If you don't have the internet, call a selection of the largest companies such as Axa, NFU Mutual, RSA and Esure and ask for a quote over the phone.

Even if you are happy to use comparison sites, it can pay to call firms directly.

Some insurers — such as Aviva and Direct Line — do not feature on these websites, as they don't use middlemen.

When retired company director Robin Naylor-Long, 77, discovered his car insurance was about to soar from £615 to £995 he called his insurer, Lloyds, to ask why.

He was told by the bank that his quote was calculated by their underwriters and they could not change it.

His partner, Caroline Dargan, 65, then tried several price comparison sites for quotes.

But after being quoted several high prices for their BMW M4, she tried going to directly to several insurers' websites.

By doing this, the couple, from Woodford, Essex, found a quote with Direct Line for £623 — a £372 saving.

DEMAND A MUCH CHEAPER DEAL

Armed with different quotes, go back to your insurer and ask them to beat the best price you've found — or at least to match it.

You'd be surprised how often your insurer will do this to keep your business. This means you'll get the best price without needing to switch provider.

Retired bank worker Anne O'Neill, 65, calls her insurer every year to see if they can offer her a better deal.

She has been with Admiral for eight years but began challenging her renewal quote two years ago when it rose to £640 a year.

Anne went on to Admiral's website and discovered that, as a new customer, she could get the same policy for £434. She says: 'I called them and they matched the quote straight away.'

The next year, her premium jumped back to £612 so she went on to their website and, again, found she could get a quote for £491 as a new customer.

Anne called Admiral and they quickly matched the online price for a second time.

She says: 'I don't enjoy having to fill out my details on Admiral's website each year to get a lower quote, but it is worth doing. It's a shame they can't just offer me the lower price up front.'

Admiral insisted it is committed to fair pricing for new and existing customers.

Pensioner Derek Parker, 65, of Maidstone, Kent, took out building and contents insurance with Halifax for £350 a year on his three-bedroom terraced house in 2009.

Having not made any claims he assumed he would receive a fair price each year.

But when his premium hit £1,045 in 2016 he was prompted by friends to use a comparison website. 

He got quotes ranging from £190 to £450. But the real insult was that the cheapest deal was with his own insurer, Halifax.

Derek says: 'I asked Halifax why a regular, long-term and loyal customer was quoted £1,045, yet a new customer was charged £190 for the exact same policy. But I have never had an adequate explanation.'

A Lloyds and Halifax spokeswoman says there are many cost and risk factors that contribute to premium rises, but that customers are always encouraged to regularly review their policies and check their renewal quote.

SWITCH . . . THEN SWITCH AGAIN

If your insurer won't match the cheaper deal, it's time to leave. There's no glossing over the fact that switching insurer can be a hassle — but it's not as bad as you may think.

Your new insurer will do most of the paperwork for you.

You will need to fill out an application form, including details of previous insurance claims. If your old insurance policy automatically renews, don't forget to cancel it with them.

And if you have a no-claims bonus, you must ask your old insurer to send you confirmation of this to pass on to your new provider.

Watch out for extra charges if you decide to pay your premium monthly. Paying annually could save about £70 on a £500 policy.

Once you've moved, be sure you don't fall back into old habits.

After 12 months any introductory discount will likely end, so to get the best deals, you must challenge your premium every year. Put the date your policy expires in your diary and a reminder two weeks before to give you time to compare deals.

This is also a good time to ensure the information you are giving your insurer is still up-to-date. For example, many drivers just give the UK average mileage of 8,000 when their insurer asks how far they drive each year.

But dig out your latest MOT certificate to get an exact figure. If you drive nearer to 5,000 a year you could easily save £50.

This is because insurers reason the less time you spend on the road the less likely you are to have a crash. Never deliberately underestimate your annual mileage or your insurer could later refuse a claim.

Adding a responsible second named driver with a good record may bring down the cost. So can tweaking your job title. For example, a sales executive would typically pay £26 a year more than a sales administrator on a £500 car insurance policy, according to MoneySavingExpert.

Another quick way to save money on any insurance policy is to increase the excess you pay if you need to make a claim.

James Allan, 73, a retired property manager from South London, has saved more than £200 over the past two years on insurance for his Jaguar XF, by switching between the same two insurers and changing the excess.

In 2015, he paid £327 for the year with LV=, but when his renewal quote jumped to £402 for 2016 he decided to switch to Lloyds Bank Insurance — where he paid £393.

At the same time, he was able to cut the excess on his policy from £700 to £250.

But when his insurance came up for renewal this month, the quote from Lloyds jumped by £207 to £600 a year. He went online and was surprised to find the cheapest quote was back with his previous insurer, LV= at £462.

However, James had to increase the excess back to £700 in order to qualify.

He says: 'I'd much rather stay with the same insurer, but it seems like you need to jump through hoops just to get a decent price.'

LV= says it strives to provide value for money and good customer service for new and existing customers and only increases premiums where necessary.

USE A MIDDLEMAN TO HAGGLE FOR YOU

While many people have success with comparison sites, others prefer to use insurance brokers. These can do much of the leg-work for you. 

The Mail's City editor Alex Brummer yesterday revealed how, after receiving a much higher renewal quote for his home contents policy, it took just a quick call to his broker to get Aviva to reduce his premium to last year's price.

But be warned that not all brokers offer deals from the whole of the market. And some offer prices only for companies which pay them to act as a middleman.

Some brokers charge customers an administration fee — from £25 to £125 — and are also paid a commission of up to 20 per cent by the insurer.

Regardless, brokers can be a good way to get a cheaper deal if you are not confident online, or prefer to discuss your insurance in detail on the phone or in person. They are especially helpful with more complex insurance.

Businessman Peter Mobbs, 62, of London, has had commercial buildings insurance with Axa for the past 25 years. Last month, he decided to shop around when his renewal quote reached £3,500.

After several phone conversations with brokers — and a few hours — he saved an incredible £2,000 after finding an offer with Allianz insurance for £1,360, including brokerage fees.

He says: 'Of course, I am very pleased with the large saving that I have made, but I am also very angry about the abuse of 25 years of loyalty.'

A spokesman for Axa says: 'No two insurers look at the same risk with the same appetite.

'Mr Mobbs' commercial property premium increased over a period of years to account for building cost and general claims inflation.'

ALL INSURERS AREN'T EQUAL

IF you make a claim, get a speeding ticket or simply change cars, your insurer may drastically hike your premium.

But this doesn't mean you can't still get a cheaper deal elsewhere. Every insurer assesses risk differently and will penalise drivers and households to different degrees when their circumstances change.

Likewise, think carefully about using insurers that you've never heard of. You will find a lot of smaller companies on comparison websites that appear cheap — but think about how easy it may be to get hold of them if you do need to make a claim or there is a problem. The benefit of bigger insurers is that they have giant teams of customer service staff waiting to help.

Paul Hudson, 60, saw his car insurance jump by almost 20 per cent in a year when he upgraded his Volkswagen Golf to a newer model. His renewal quote rose by £73 a year from £386 to £459.

When he called RAC to query the rise, they explained it was just a 'computer-generated figure' and offered to drop it back to last year's price.

But the retired finance worker shopped around and moved to Aviva for £338. He says: 'The message seems to be that, if you don't challenge us on the price, we will overcharge you.'

A spokesman for RAC says: 'Our advice would always be to call us if you are unsure about a renewal price as, by checking all elements for your level of risk, you can often secure a better deal.'

l.eccles@dailymail.co.uk

 

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