Shop around for the best insurance deals

Many Islanders have been in touch this year – and especially this past month – about the eye-watering costs of their insurance renewals.

It has already been well reported that some law changes in Gibraltar have had an impact on motor insurance policies, but it now seems the impact of last year’s storm is really starting to bite when people are trying to insure their homes.

In one instance, an Islander called us to say that their home insurance premium had inexplicably gone from £646 to £10,610 a year – and that’s despite them not making a claim. After some probing, the UK-based insurer came back to reveal their 16-fold increase was as a result of ‘recent flood and storm damage in Jersey’. Presumably that refers to the two extreme incidents of the Grand Vaux flooding and Storm Ciaran. Further questioning revealed that the company was artificially inflating the premium costs in order to effectively put the Islander off renewing as Jersey was proving ‘too expensive’ for them cover.

While Jersey is served by a number of insurance firms, it is worth remembering that many of these are brokers, with the actual policies being underwritten and issued from UK or multi-national insurers. Therefore, if the word is now out among the industry that this Island is being black-listed, then people are right to be concerned.

The team at the Jersey Consumer Council will keep monitoring the issue and offer advice where we can. 

In the meantime, it is still possible to save yourself many hundreds of pounds on your home and motor insurance policies by shopping around when your renewal comes through. Yes, it can be a hassle to go through all of the information over and over again, but there is no doubt you did it when you first took your policy out, so why not do it each time as, unfortunately in the insurance industry, their appears to be very little benefit from remaining loyal to a particular insurer.

In the interests of supporting our local economy, give at least one, preferably two, local insurance providers/brokers the chance to quote for your business when your renewal comes through. Don’t reveal what you have been quoted straight away and let them offer you their best price before you reveal what you can find the same cover for elsewhere. There’s always a chance they will try to undercut their competitor.

Then, when you have a minute, try one of the price comparison websites – being careful to opt out of the marketing preferences – as you only have to enter your details once and then let them do all the hard work for you. You can then compare what cover you are getting for your money and make an informed and careful choice. Just remember the golden rule:  never let your premiums auto-renew!