Will car insurance companies price match?
When you’re about to hand over your money for your weekly supermarket shop, you probably don’t think about asking for a discount – but, if you were buying a car, you might see if you could talk your salesperson down a little.
Talking to companies about price matching and discounts is tricky – in some cases it’s perfectly acceptable, but in others, it’s not the accepted way of doing business.
So, what about car insurance?
Is it reasonable to ask your car insurance provider to knock its price down a little to match another quote you’ve had? Or should you just pay your premium and focus on driving your car?
Here, we’ll look in a little detail about whether or not insurance company price match – as well as how you can make sure you’re comparing like-for-like if you push for a better price.
Do insurance companies price match?
In many cases, car insurance companies will move a little (and sometimes a lot) on the price you’ve been quoted – but it depends on your circumstances.
For example, if you’re a new customer looking for an insurer for your new car, there’s a good chance you’ll get a competitive quote straight away. In contrast, if you’re an existing customer and you’re sent a price that your insurance will auto-renew at, there’s a good chance you could call and have this price significantly discounted.
Why?
Well, it’s all to do with customer behaviour.
Insurance companies understand that most people compare prices when they seek new car insurance – but equally, they also know that existing customers often let their policies automatically renew. So, it makes sense to be as competitive as possible when you’re looking to win new business – but if you know many of your customers are going to let their insurance renew at the price they’re given, there’s no need to be quite so competitive.
Haggling as a new customer
If you’re a new customer getting quotes and comparing prices, there’s absolutely no harm in asking for a further discount when you come to buy your policy. You’ll need to have details of the policy that you’re comparing with to hand – as your insurer will want to know some specifics – but as long as the cover and the benefits are the same, they may well match your price.
Results will vary from provider to provider – so don’t be put off if the first one says no, as the next company you speak to might be more flexible.
Don’t forget though; insurance isn’t all about price. The cheapest policy you find might offer a very basic level of cover with some exclusions – whereas you might find that for a small amount more, you get a policy that comes with extras like breakdown cover, gadget insurance, and a courtesy car – as an example.
Take your time to compare your options carefully, and go for the one that’s the best value for you and your needs – rather than just the cheapest.
Haggling as an existing customer
Auto-renewing costs UK car insurance customers a lot of money. According to one comparison site’s research, 4.6 million drivers allowed their cover to renew in 2018 – which meant they missed out on a collective saving of nearly £600 million.
So, it pays to haggle.
If you want to push for a price match, you can simply say that you intend to use the other company if they don’t offer you the same price and the same benefits. It can be a double saving if they say yes – as people taking new policies often have to pay 20% as a deposit – whereas you’ll probably just continue making a monthly payment with your existing provider.
Again, like you would if you’re a new customer, it’s a great idea to have the quote you’d like them to price match in your hand – so you can be certain you’re getting the same benefits and conditions across the board. Don’t be fooled into thinking they’re bringing the price down if they’re simply removing benefits – as you might find you end up with a low-price deal that doesn’t represent great value.
