Save Money With New Barclays Insurance?
April 2005
Barclays Bank are making mega-waves in the insurance industry with their claims that they can save clients on average £270 on car insurance, £145 on home insurance and £26 on travel insurance.
The bank wants to become a 'top 5 general insurance player' so its got to do something drastic to win the 1.8 million customers it covets. And lower premiums are the tonic that punters like to see.
The Oldest Trick in the Book?
Reduced prices alongside heavy promotions is almost guaranteed to generate sales in almost any business or service. But the old trick within the personal finance world is to increase prices (at the next review) once you've got the clients onboard. Of course many will spot this ploy and take their business elsewhere, but then many or perhaps most won't because they can't be bothered/forget/don't realise prices have gone up etc.
So what's the betting that this trick is all part of Barclays insurance business model?
So Play The Game
Chances are they will raise premiums the following year and chances are also that you'll be able to find a cheaper quote elsewhere. Perhaps one of Barclays competitors will do the same (offer cheaper premiums) to win back the business it's lost.
But whatever the case we've got to play the personal finance game (understand the different financial products, understand the pros/cons, do our homework, understand the tricks the finance companies like to play, and fight back by moving money/policies around).
Chances are that Barclays Insurance can save you money but remain vigilant as to hikes in next year's policy, and if so look to move your business to a competitor so playing the personal finance game by your rules.
See Also
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