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The Problem With A Rolling Contract …

 

We all like to make our finances easier don’t we.  Standing orders, internet banking and rolling contracts mean we can organise the best deal, set up a payment and then get on with our life without worrying.  The only problem is that by sticking to the same contract over a period of years, may actually cause you to miss out on some fantastic savings or offers for new customers.

One could be forgiven for assuming that a long term customer would be valued more than a new customer.  Of course, companies need to offer great incentives to encourage potential clients away from their old service providers, however it is a bit of a liberty when you find out that you are paying way over the odds for all those years of loyalty.  So you need to start playing the game.  

Car insurance companies are actually pretty good at giving you improved deals over the years you stick with them.  With no claims bonus discounts and incentives to drive better, you can actually make pretty great savings as the years go buy.  However it does pay to look around.  As the saying goes, just because you own the restaurant doesn’t mean you can’t look at other menus.  A month before your renewal it’s good practice to compare insurance quotes via the internet.  There are loads of great sites who can do this for you, however it is worth remembering that not all the best deals are available through comparison sites.  Once you have the best quote, make sure it offers you all the same deals your current company does then, before you go ahead and switch providers, call your current insurance company and see if they will match it.  Most providers will consider it and, if they aren’t willing to budge on your price? Move.  

Pet insurance is one of the worst for hiking the price up. Recently, one client of a large provider, took to the internet to complain when he noticed his renewal had gone up by £100 per year.  Of course there are factors that should be considered, such as the older your pet becomes the more likely it is they will develop and illness that will cause them to need expensive treatments, however in this particular case the dog was 5 years old, active and healthy with no previous claims.  The man decided to compare quotes on the internet and his own company offered the same insurance on his dog for £120 less than he was paying.  He cancelled his insurance with them, started a new contract and was honoured the discount.  His cover even provided one extra service he wasn’t receiving with the old cover.  This was the same company! The same policy! For a huge saving.  Always ensure your cover is the as comprehensive as the one you receive and also, make sure you can start a policy as a new customer before cancelling the previous one.  But this is a great example of insurers getting customer loyalty so wrong.

Credit cards tend to become more expensive the longer we keep them.  We open an account with interest free on transfers and a super low interest rate for the first two years.  Then before we know it, the interest rockets up and we might be paying over the odds on the credit we have.  Unless you are tied into a hefty contract, you can move your credit all over the place as banks are crying out for your custom.  It is a busy market which means there are high demands on offering the best rates.  You do need to bear in mind that credit checks can bring your credit score down.  So if you are having 4 or more checks a year, that will have a negative impact on your ability to get the best deals.  However, don’t let that put you off keeping your eyes on the best deals.  

There are also loads of new mobile phone providers offering fantastic bonuses and incentives to new customers.  Most providers understand the importance of keeping their loyal clients happy, this is due to the demand in services.  So take a few moments every year to talk to your mobile phone company about any extras you can get to soften the blow of other providers wanting to give you a better deal.  You may find you are eligible for an early upgrade or by skipping the upgrade you can reduce your monthly bill.

Keep your eye on the market and keep talking to your current provider.  Don’t just allow those contracts to roll!