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One thing I detest when it comes to managing finances is Insurance Policy Renewals. Which is why I’m excited to be collaborating with Cheapercover.com to let you know about their plans to change things. People want to get cheaper insurance cover. We don’t want to be paying excessively, and we certainly don’t want to pay through the nose when it comes to policy renewals.
I hate how renewals can happen automatically before you’ve even mentioned the word ‘insurance’. I cannot abide the abundance of paper that comes through my door every time a policy change is made. Especially when I can’t see those behind-the-scenes changes that make up the cost of my insurance premium.
Cheapercover.com are planning to disrupt the insurance industry as we know it to bring cheaper insurance to its customers. They have a great introductory video over on their website, explaining how the cost of insurance has crept up over the years. It was a bit of an eye-opener for me, as there are things in those costs that I’d never have considered.
The true cost of insurance
In the beginning, insurance was a business transaction between the insurer and its customer. Insurance premiums were calculated based on things like age, demographic, previous claims etc.
But these days there are other costs when it comes to your premiums. Insurance brokers, pay-per click search engine fees, and price comparison websites are all contributors.
An insurance broker might charge 10-20% of the total premium. Insurers, brokers and price comparison websites (PCWs) pay up to £8 per click for popular keywords such as ‘car insurance’. And while useful in bringing you a list of policies and premiums to help you make an informed choice, PCWs charge brokers and insurance companies around £50 per policy sold.
So it’s not just the insurer involved when it comes to your insurance premiums, and surely these costs need to be recouped somehow.
You might get a competitive quote in your first year, but what about your renewal price?
In 2018 the Financial Conduct Authority announced they were looking into whether insurance providers were treating customers fairly when it comes to pricing. Some of us are vulnerable when it comes to our finances, and it’s time that changed.
Semi-automatic switching – without the extortionate renewal cost
Cheapercover.com want to bring back the true cost of insurance, by cutting out the middle man and extortionate interest rates on monthly repayments.
With the use of ‘blockchain technology’, Cheapercover are one step ahead. Because if your insurance price increases by more than the rate of inflation, they’ll automatically search for a better price. Then you have the choice of whether to proceed with the switch.
But what is blockchain technology? Simply put, it’s a technological advance that reduces human error. With blockchain, documents – such as insurance policies – can be accessed by all parties concerned, complete with a history of changes that cannot be removed or deleted.
The best part is, Cheapercover customers will be able to access, view, and make changes to their policy. The policy will then be sent to the insurer/broker to make the required adjustments. With just one copy of the document, all parties concerned (including the customer) can see the new version and an accurate record of historical transactions.
To me, it’s another opportunity to take control of your finances and see exactly what you’re paying for. I always look for cheaper insurance cover, and the easier it is, the better. You can read more information and sign up to Cheapercover.com here.