We present a real case. The time has come to renew the car insurance and the company wants to increase the price by more than 340 euros from one year to the next. She is a client who has been with the company for a long time and has not had any accidents in the last year. However, the price of the policy goes from 345.90 euros in 2023 to 689 euros in 2024.
This client calls the company to ask for explanations about the excessive price increase that, apparently, has no justification. After some checks, the insurer offers a reduction of no less than 200 euros on the renewal offer. And also, a 25 euro discount for paying by card.
In total, 225 euros less if you pay instantly over the phone. The price of the policy for 2024 remains at 464 euros. This is not a telephone scam, but rather a common practice among insurance companies, which almost always offer higher renewal prices than what we can really get if we contact them.
Often there is no need to even threaten to go to another insurer. By simply taking the step of calling and asking for explanations about the rate increase, we can obtain a reduction in the price of the policy.
This is confirmed in RAC1 by Celia Durán, spokesperson for Rastreator, a portal specialized in comparing insurance: "It is the same user who can pressure for these prices to be better and better. If we all pay for the renewal without looking and assume the price they give us , we will probably pay more than we would if we shopped around, negotiated, and worried about getting that price down."
From Rastreator they confirm that these discounts are common because "companies do not want to lose clients they already have in their portfolio." And the factor that they take into account the most when assessing whether it is worth giving the client a good offer is his accident history as a driver. That is, if he has suffered more or fewer accidents and fines. "If they consider that your risk profile is low, it is very likely that they will make you an offer so that you do not leave," says Celia Durán.
Obviously, we will not always get a reduction of 200 euros like the one in the exposed case, but "it is very likely that there is room to improve the price," says the expert. In addition to the customer's history, each company has its company policy and takes several factors into account.
Therefore, the recommendation whenever the policy renewal is approaching is to compare prices with what other companies offer and call ours to negotiate a possible reduction. "If you let it renew automatically from one year to the next, three years later you will find that you are paying much more than the first year, being a good driver," concludes Durán.
In addition, Rastreator's spokesperson highlights that if the company wants to increase the price of the policy, it is obliged to inform the client at least two months before the renewal date. If they do not do so, we can demand that they maintain the previous price.
The expert insists that it is always interesting to explore the market to find the best offer, because "in very similar products, with similar coverage, we see a lot of difference in price."
All this, in a context of price increases in the sector that Rastreator estimates at 15% during 2023. "It is very likely that, if you have not seen it already, you will notice a price increase in car insurance when it is your turn renew," warns Durán.
Finally, Rastreator also recommends carefully reviewing what type of policy and coverage we really need for the use we make of the car, and hiring a product that adapts to avoid unnecessary extra costs.
This article was originally published on RAC1.
