Britain’s biggest insurer, Aviva, is promising to give loyal car and home insurance customers the same or better price at renewal as new customers. It will also drop the extra amount usually charged for paying monthly rather than annually.
The company describes its AvivaPlus deal as a subscription-style service, which will allow drivers and homeowners to make monthly payments for their insurance with no additional APR and let them cancel without charge. It also comes with a guarantee that they will be treated the same as new customers at renewal.
Guardian Money has repeatedly highlighted scandalous year-on-year increases for loyal customers of home insurers, usually the elderly, who pay inflated premiums compared with prices paid by new customers.
A typical example we highlighted was a home insurance policy held by an 85-year-old in Leamington Spa and sold to her by Lloyds Bank. Despite her 30-year loyalty to the company, it was charging her nearly £700 a year, compared to £144 on the open market.
Aviva says its new policy “is designed to address consumer concerns with the industry and give customers more control”, adding that existing customers will be able to switch to AvivaPlus at no charge.
Note that this is not a guarantee that prices won’t rise at renewal, or that it will match competitors’ prices, so it will still make sense for Aviva policyholders to shop around to see if there is a better deal on offer.
MoneySavingExpert says of the offer: “Insurance prices can be hard to compare as quotes vary depending on your circumstances, but it’s worth noting Aviva says there’s no guarantee AvivaPlus will work out cheaper than its standard policies, and some customers may find its standard products to be a better deal. This is particularly the case if you know for sure you’ll need a full year’s cover and won’t want to leave early.”