More Th>n comment on Sainsbury’s “massive discount” on home insurance
MoreThan.com have commented on Sainsbury’s home insurance offer;
Sainsbury’s has rolled out a seemingly appealing discount offer for new customers, but look closer and it’s easy to see the deal is just another short-lived, headline-grabbing promotion.
Essentially, the offer is 25 percent discount for joint buildings and contents cover, with an extra 10 percent off for buying online. But only those fortunate enough to buy before 26th May will be able to benefit, and furthermore as the offer is only applicable in the first year customer loyalty is not rewarded.
Keith Maxwell, Product Manager at More Th>n said: “MORE TH>N seeks to attract new customers with great offers but also reward their loyalty every year through new initiatives such as Free Contents cover for Life - worth an average £100 per year. It also offers a 20 percent discount when the customer buys over the phone or 25 percent when they buy online. Existing MORE TH>N customers are also rewarded for their loyalty through a range of exclusive discounts at a number of leading high street retailers.“
I’d like to pick up on a few points here, firstly, “the offer is 25 percent discount for joint buildings and contents cover” So how many people do you know who have buildings cover with one insurer and contents cover with another insurer? That very rarely happens because it makes no sense to buy them separately.
Secondly “only those fortunate enough to buy before 26th May will be able to benefit” well they’ve got just under 2 months to make an application! Fair enough you miss out if your home insurance isn’t due for renewal before 26th May.
Thirdly “furthermore as the offer is only applicable in the first year customer loyalty is not rewarded.” In the age of price comparison people who stay with the same insurer longer than a year for car insurance or home insurance are not getting the best deal, it’s as simple as that.
I’d bet that even with the ‘offers’ of further discounts or even ‘free’ partial cover in additional years, you could find a different insurer that would be cheaper.
The offer of ‘Free contents cover for life’ is designed to make customers think twice about moving their buildings and contents cover. I wonder how much More Th>n have to charge on their buildings cover to make up for giving away all this ‘Free contents cover for life’ you can bet you’ll be paying for it somewhere along the line.
It’s all very well offering 10%, 20% or 25% discount “when you buy over the phone or online” and so on…But, the bottom line should be is the insurers quote the cheapest or most competitive for your circumstances? And how do you really know how much discount you’re getting, 10%, 20%, or 25% discount on what? You don’t know what the price should be in the first place because the insurer gives you the quote!
So yes as More Th>n say - don’t be fooled by short-lived, headline grabbing discounts, make sure you compare home insurance and compare car insurance every time you get your renewal quote. This is the only way you can save money on insurance.