Car Insurance – why it pays to ask questions

For years now I’ve delegated the shopping around for the cheapest car insurance to a well known (UK) breakdown and recovery organisation. I’ve had no problem with this until now: they send you a renewal notice a few weeks before your car insurance expires, along with a note to say that “so and so” is the cheapest deal they could find, and you believe them, because they wouldn’t lie to you would they,  so you pay it.

Last year the insurance premium on “Old Grumpy”, a 1.8 litre Vauxhall Astra, cost me just over £400, which I thought was a bit pricey, since I’m nearer to 50 years old than 19, and haven’t had a claim in nearly 20 years (touch wood) but hey: the world’s economy has just collapsed and everything seems to be falling down or getting blown up or flooded,  and things in the world of insurance are consequently  a bit dodgy at the moment, so I paid up. Today, however, I received notice of my renewal and this year the absolute cheapest quote  was £650.00.

When I read this I had a Broadgate Meadow moment, swore in disbelief and did something I’ve never done before: I got on the phone to the well known (UK) recovery organisation and asked if they’d perhaps made a mistake?

No, there was no mistake. Things were topsy turvey in the world of insurance sir, but we can reduce it by £100.

What?

Have I got this right?

There’s no mistake; after all your hard work on my behalf, £650 is the cheapest quote you can find me, but because I ring to query it you can knock £100 off it straight away without so much as a sharp intake of breath?

Me-thinks there’s something funny going on here – a dimension to the universe of insurance providers that lies hidden to the rest of us, is mysterious, intangible, mercurial.

So, my insurance was now down to £550,  but this still seemed rather high to me, so I said I’d think about it. Meanwhile, the call centre bod passed my details on to a mysterious  “special office” to see if they could reduce it still further.

Perplexed, head in hands, and wondering if I should finally trade Old Grumpy in for a 50 cc moped, I checked online with an independent insurance provider who quoted me £360 – and that was the gold plated version: legal fees, protected no claims, enhanced courtesy car, blah-di-blah-di-blah.

I was about to sign up to this when  the “special office” of the well known (UK) breakdown and recovery organisation came back with a further reduction of £150.

So,.. wait a minute: you were going to charge me £650 , but because I queried it, you were suddenly able to reduce it to £400?

I’ve allowed the well known (UK) breakdown and recovery organisation to manage my car insurance for more years than I can remember, but I was forced to take my leave of them because, although I recognise  my trust was naive, I lost that trust today, took charge of  my own shopping-around and saved myself nearly £300 in the process.

My advice? Obviously, whoever your car insurance is with don’t just pay it when you get your renewal. Your apathy is an essential part of the financial services business model, and these are tough times, so be vigilant, or you’ll be the one getting shafted.