As we mentioned on our newsletter for the end of year 2021, the FCA has enacted a ban on the loyalty penalty – the practice where insurers offer cut price premiums for the first year before nearly doubling them for the second year onwards. The FCS estimates consumers will save £4.2 billion over the next decade as insurance rates cannot increase without an increase in the risk level of a customer. This includes home insurance, car insurance and other types of policies as well. Insurers will most like split the premiums between new and existing customers, so new customers will not necessarily see a sharp increase.
Without an incentive to switch provider, existing insurers will need to resort to other means to attract new customers, like shopping vouchers, loyalty points, or other schemes used by other companies to keep on customers. The insurance market has always been fairly competitive, with new entrants to the market with FCA regulation supporting them, such as Reddbox. That’s right, we will be offering by the end of the month, home emergency insurance and electronics insurance as well as rent guarantee.
Outside of searching for the best prices and contacting insurers regarding a price match, make sure to check your policy wording to make sure the policy is the right one for you. Check that it offers the breadth of support, the benefits, and that it provides the value you are looking for. Certain policies are more comprehensive then others and some offer a wider range of benefits and coverages designed for different customers. Make sure to always read the policy wording and ask customer service if the web site or the wording does not answer your query.
Reddbox is just about to launch new insurance policies so you can take out insurance, manage your plans, and streamline your property management all in one app, so hang in there!
Our offer: Download the app and start saving time managing your properties. Follow the screens to provide your details, and that’s it. Some of the key features why you should consider Reddbox are –
- A completely app-based, super simple service booking process.
- Options to pay for the service over a few months without any additional interest or fee. See our rates here. Be quick, we are running promotional rates at the moment.
- You can book the service seven days a week, which means no need to disrupt your busy day.
- A very transparent cancellation and refund policy.
- And the best one – Reddbox will automatically organise all the relevant documents such as invoices and certificates.