Loyalty pays with motor insurance

Taking multiple insurance products from the same provider can cut the cost of your cover, shows research from MoneyExpert.com. While only 13 per cent of motor insurers offer discounts to customers who buy other policies from them, the financial comparison site says it makes sense for drivers to cut their bills any way they can. Some insurers offer up to 10 per cent off motor insurance to customers who have other insurance cover with them. With the average annual comprehensive car insurance policy costing £806, this could be a big saving.

With other policies, the discounts can be as high as 40 per cent of buildings and contents insurance. The companies that offer discounts to customers who buy insurance policies for more than one product include Norwich Union, Virgin Money, Direct Line, Egg, Churchill and Liverpool Victoria.

MoneyExpert’s research shows that the available discounts range from around five per cent off motor insurance at Argos if you have home insurance with them to as much as 40 per cent off home insurance and 25 per cent off breakdown cover at Direct Line if you already have motor insurance. NatWest also offers 10 per cent off motor insurance to customers who already have home insurance or annual travel insurance.

Sean Gardner, Chief Executive of MoneyExpert.com, said: ‘Loyal customers who buy a range of policies from an insurer are being rewarded and that’s to be welcomed. It can make sense to put all your business with a company if you value the customer service. If customers like and trust an insurer then the firm can afford to offer discounts and it is encouraging some are doing so.’

He expressed surprise at how few of the 190 comprehensive motor insurance policies on the UK market offer a discount for multiple purchases, adding: ‘Loyalty should count for more.’