Insurance Discounts

insurance offers and discounts image

Some firms use insurance discounts, offers, cashbacks, and even Soft Toys to try to get you to buy their cover! But, are you getting a good deal?

Offers may work but you can be tempted into the wrong deal!

The Financial Conduct Authority did an experiment to see how promotions could impact price comprehension and purchasing in ‘general insurance’ policies like Home and Motor cover.

Their study found that:

  • Promotions can undermine your ability to select the best insurance deal and correctly assess the actual cover prices.
  • Promotions that resemble cash discounts (like retail vouchers, loyalty points and cashbacks) were most effective even though the cost could be hidden in the overall price.

Ask yourself these 4 questions:

  1. If the cover is priced fairly, why discount to only new customers or,
  2. Are their margins too high? and,
  3. Will my premium rise next year?
  4. Who is offering a more competitive policy?

The FCA have changed the rules for next year to protect customers. Both cash and cash-equivalent promotions for new customers will need to be carried through for all customers at renewals and available to all new customers.

When you see ‘Cheap Deals’ like ‘3 months off’ being offered to new customers, it should be provided to all existing customers as well.

Currentlty, these offers are often costed into your renewal premium, this year or next. Therefore, you could often pay more if you do not switch providers. Also, existing customers currently can lose out at renewal because of the ‘loyalty penalty’.

When buying insurance, the most important thing is to make sure you purchase the cover you need at the best price and –


Our prices are just straightforward and transparent, all customers get the best prices and cover we can offer.

Research Note: Discounts, Cashbacks, and Soft Toys: The Impact of Promotions on Consumer Decisions in the General Insurance Markets (