I’m currently renewing my house insurance which is an annual task I hate doing. It always feels like a big gamble, how do I know if my house will fall down and how cub it will cost to rebuild. The effort as well of filling in the same form getting quotes is just a pain as well. Yes I can use a comparison site but the quotes are never right and really no better when you have made the policy match against a direct quote.
The other thing that’s has annoyed me is recent thing with the excess. I accept that I will pay the first £200 of a claim. However some companies now I still a mandatory excess of a further £100. I know I can in theroy choose to have no excess but don’t stiff me twice.
Anyway why does it need to change. Well with house and car insurance these are things we each year need to renew. There is a lot of effort that goes into this on everyone part. So why do we renew every year and not have a longer policy length? 3 years or 5 years seems reasonable. You can have life insurance policy for longer so I don’t believe its legislation thing?
With my insurance policy the costs has gone up by £50 but I haven’t had a claim in the last year so why? Surely if i haven’t had a claim I should be rewarded. Instead I have found a better cheaper policy elesemwhere and will now move, only to repeat the charade next July. A benefit of being in a longer policy and showing a commitment that if you stay claim free for 5 years it could mean a real rebate rather than some money of your policy if your lucky. There would possibly be a need to take into account environmental factors that would normally cause your renewal to each year adjust and so there would need to be a way of handling this. However I suspect this could be eradicated by the reduction in costs of the companies having to handle so much admin.
I’ve not fully thought this through but it feels like its ready to be disrupted.