We know insurance prices can be a bit confusing, particularly when it comes to your renewal. That’s why we want to keep things as simple as possible.
Insurance prices explained
Let's start with your renewal quote. If it's based on the same details, the renewal price for your insurance premium (that's the cost of your policy) should never be more than the premium we'd offer you as a new customer. But, in some cases, you might still find a new customer quote from us that is cheaper. Here are a few reasons why:
Your quote details don't quite match your renewal
The details you've entered might be different to the ones we've got on record e.g. the driver information or mileage. Or you've selected different optional extras on your new quote, such as adding breakdown cover or home emergency cover.
You've chosen a different product e.g. Hastings Essential instead of Hastings Direct
We offer lots of different types of polices, so your new quote might be different to your renewal quote. Take a look at our range of flexible and hassle-free policies.
Our prices change daily
On the day we issue your renewal quote, the price you receive will be the same as a like-for-like quote for a new customer. However, if you get a new customer quote on a different day than your renewal quote, it could be cheaper (or more expensive). It's because our prices change daily. To make sure we're always competitive, we constantly monitor market trends and regularly adjust our prices.
You choose to pay by Direct Debit
If you choose to pay your insurance premium by monthly Direct Debit, we will charge interest on the premium amount you don't pay straight away (this is the loan amount). New customers pay a deposit as part of their Direct Debit arrangement, whereas renewal customers often don't. This means your loan amount, and consequently your interest payments, could differ.
If you do find a new customer quote that has the same like-for-like details as your renewal quote, but at a cheaper price, you should always get in touch so we can take a look and match it.
Why your renewal might be more expensive or cheaper than last year
You might not think anything has changed, so you may be wondering why your renewal quote is different than last year? Here are a few reasons why.
It's all about you
Your insurance policy and price are essentially based around you and your individual details. So changes in your circumstances will usually mean your price changes too, such as:
Lots of things can happen in a year. Moving home, changing jobs or a new car. These can all affect the price of your insurance. Even if you haven't told us about any changes, we still have to consider other factors, such as your vehicle or property being a year older.
Your claim history
Changes in circumstances mean your insurance price will go up if, for example, the chance of you making a claim has increased. If you've been involved in an accident (and even if you didn't claim), then statistically, you're more likely to make another claim in the future. A claim may affect your no claims discount if you haven't protected it, so if you lose some or all of your discount, this will be applied to your renewal.
Your driving history
For car, bike or van insurance, we can't ignore any changes to your driving record. If you've been given a speeding conviction over the year, it's only fair this is reflected in your price. Driving or riding too fast increases the chances of you having an accident. So, that increased risk is likely to mean an increase in your price.
It's worth pointing out that changes can also mean a lower price, such as if you've had a claim-free year and your no claims discount has increased. It works both ways!
Some things are out of our control
There are lots of other factors that will affect the price of your insurance, which unfortunately, none of us can control. For example:
Increased repair costs
As technology improves in modern vehicles and properties, we can all look forward to safer, more economical living. The downside is that things are generally more expensive to repair and replace, meaning increased insurance costs.
Accident and crime
It doesn't matter whether you're the best driver or rider in the world, or you've made your home as secure as possible. There's always the risk of someone crashing into you, taking your vehicle or stealing your valuables. It's why insurance prices always have to take into account crime and accident rates in your area. If either of these go up or down, then your price will generally change too.
Taxes and levies
Insurance providers have to pay taxes or levies that are set by the government or industry bodies. Sometimes these can change and impact the price of your renewal quote.
The key thing to understand is that insurance prices change for lots of reasons. They can go up, but they can also go down. When you renew, your insurance premium (that's the cost of your policy) will be the same or lower than the premium you would be offered for a like-for-like quote as a new customer. And if you're not happy with your renewal price, we're always here to see if there's anything more we can do. All you need to do is get in touch!