Direct Line and LV= to include previous premiums on renewal letters
Two more insurers follow AXA's lead in coming clean on premium increases.
Direct Line and LV= are the latest insurers to pledge to include previous premium information when sending out annual renewal letters.
The insurers have promised to include the previous year’s price, so you can see exactly how much more you will paying for your policy, putting you in a more informed position when shopping around.
The insurers are the first to follow AXA’s lead in including previous premium prices in renewal letters, a move it announced back in May.
More to follow suit?
Direct Line told campaign group aspokesmansaid.com that all major insurers are now “in ongoing discussion” to do the same with their own renewal letters.
It said that being fully transparent in this way was “the right thing to do”, but warned that it will not be able to make the change immediately as a result of the “significant changes” to its IT systems it is having to make following its separation from the Royal Bank of Scotland.
Kelvin MacKenzie, founder of aspokesmansaid.com, said: “These companies have been taking advantage of their most, loyal, long-standing and trusting customers. I’m delighted they have finally caved to pressure but this change is long overdue. I suspect they have decided to jump rather than be pushed by the regulators."
Remember, there is more to shopping around than just the headline price of the policy. You need to make sure you are comparing similar levels of cover, what the excess levels are and whether there are any small print differences between the insurance policies.
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