Yahoo Finance Exactly what you need to say to get a discount on your insurance and broadband
Much has been said about the pain inflicted on households by successive rises in mortgage payments, rent, energy bills and the weekly shop in recent years.
Less remarked upon have been eye-watering increases in insurance premiums and broadband.
The former has been particularly egregious: the cost of insuring a vehicle rose to record levels in 2023, with the average premium for comprehensive cover rising by an average of 25pc.
As for broadband, thousands of customers will have seen an inflation-busting rise this spring, as providers including BT, Three, EE and Vodafone increased the average annual bill by £27 a year.
Unfortunately, these costs are unavoidable for many households – but there are tactics you can use to keep your bills as low as possible.
Here, Telegraph Money explains your rights, and exactly what you need to do to secure the best rate on your monthly insurance payments.
How do I actually haggle?
The key to haggling is confidence, and organising the situation so you have the upper hand.
British people do not like talking about money – and our experience of bartering for a fair price tends to be limited to foreign markets, where we are still routinely ripped off. But when it comes to negotiating a fair insurance deal, being bold is the best way to get a result.
Don’t leave it too late
Martyn James, the consumer expert, recommended putting the date of your insurance renewal in your diary. “It’s generally considered that negotiating three-to-four weeks before the renewal date is when you get the best-discounted price,” he said. “The closer you get to the date, the more expensive it is.”
Cut out add-ons
Some policies will contain add-ons that are unnecessary for your situation, such as legal insurance, so Mr James advised “cutting the fat” and asking for them to be removed.
Get prepared
It can also pay to get all relevant information together before you make the call, so you can reference it – for home insurance it might be details on your belongings and home; for broadband, it might be your usage pattern and whether the package you’re paying for matches up.
“Take time on the application. Price up the value of the goods in your home, for example,” Mr James said. “Many people find that they are actually over-insuring because the value of some items has decreased the longer they have had them.
“It’s worthwhile getting detailed on things like repairs to the structure of a building or roof, for example, or exactly when your car passed its MOT.”
Use the renewal line
Mr James recommended going through the specific renewal line, not the helpline. “Tell them you have much better offers elsewhere and you want to see if they can improve or match them, or you’ll leave,” he said.
Threatening to contact “head office” is more effective when lodging a complaint, however. Mr James said: “A formal complaint must be logged and details of how they are dealt with go to the regulator.
“You will make more progress if you make it clear you will take the case to the Financial Ombudsman if not happy, which charges businesses a case fee if they take on the case.”
What about going above the heads of customer service teams and straight to the CEO? Sadly, this is unlikely to work, said Mr James.
“Threatening to go to make a complaint to the CEO used to make a difference to businesses in the past,” he explained. “But bear in mind that the person you are speaking to might know full well that you aren’t going to get anywhere near their office these days.”
How to haggle down car insurance
Despite the banning of the loyalty penalty, which means insurers are no longer allowed to offer preferential deals to new customers, 46pc of those who looked for an alternative provider found they were able to save money, according to Confused.com.
Similarly, getting on the phone with your insurer to discuss price increases has also been known to work. Consumer group Which? found that roughly half of insurance customers who contacted their insurer directly to dispute price rises were able to negotiate a lower rate.
Service providers of all kinds have retention departments specifically geared toward stopping existing customers from taking their money elsewhere. These are the people you want to speak to.
Mention any cheaper rates you have been offered elsewhere, and don’t be shy about playing the loyalty card if you have been a customer for many years.
How to get cheaper home insurance
Home insurance premiums have been affected by inflationary pressures, along with damage from severe weather.
The key to make sure you don’t get ripped off when you get a new policy is, again, getting hold of the retentions department, as outlined above.
Be sure to shop around and have better value quotes ready to cite. If your insurer fails to match them, you can always vote with your feet.
How to secure a better broadband deal
Like any service provider, broadband companies raise their prices every year to cover inflation and business costs. Broadband providers also introduce annual mid-contract price rises.
These are tied to the Consumer Price Index measure of inflation, published in January. Broadband companies also commonly tack on an additional 3-4pc.
But broadband providers can be haggled with, just like home and car insurers. Ernest Doku, uSwitch’s telecoms expert, said: “Many of the best offers are reserved for new customers. So, even if you are happy with your current provider, it is worth seeing what deals are out there to avoid paying a “loyalty tax”.
“If you can see better deals are available elsewhere, tell your current provider you are considering leaving. Suppliers really don’t want to lose customers, so if there is a better deal elsewhere they may be inclined to match it.”
But, he added, customers should be wary that they are eligible to switch without paying any early termination fees. It’s a good idea to check your policy details or contact your provider to find out whether you are out of contract and can switch providers for free.
“For broadband customers, deals can vary by location, so the best approach is using your postcode to search and compare deals in your area,” Mr Doku said. “Many providers offer additional incentives to new customers, such as bill credit or vouchers.
“Look out for new broadband providers moving into your local area. Those local flyers through your door promising fast speeds and better reliability – don’t just throw them away.”
Threatening to leave can also set the cat among the pigeons in retention teams – and broadband providers have been known to ape the techniques of subscription services by offering hitherto undiscovered discounts.
Some streaming services are also known to use analytics data to pre-emptively offer discounts to customers who they think are likely to cancel, according to Stephen Hateley, head of product and partner marketing at DigitalRoute, which works with several global streaming services.
“Subscription fatigue has also arisen as a result of over-subscription during the pandemic – this includes music and video but also meal prep, beauty boxes, and alcohol,” he said.
“Consumers are increasingly realising that they don’t need these recurring services any more or are cutting their outgoings.”
Even if you are not a disaffected customer, telling a service provider that you are can net you some incredible value.
