Aviva has become the first major UK insurance company to launch a new subscription-based service to put an end to loyal customers being punished by higher renewal premiums.
The new product for car and home insurance is called AvivaPlus and aims to make insurance more flexible for UK consumers – allowing customers to change their cover as often as they like without incurring charges.
Below we take a closer look at how AvivaPlus works and whether it offers value for money.
What is AvivaPlus?
Subscription services have taken over the entertainment industry in recent years, particularly the likes of Netflix and Spotify, and it seems the insurance industry could soon follow suit.
AvivaPlus is the first subscription insurance product aimed at addressing the concerns of consumers that loyalty doesn’t pay when it comes to insurance renewals. The best deals for car and home insurance are routinely saved for new customers who are switching to a new provider, with current customers seeing huge increases on renewal – creating a market where everyone has to change policy every year to make sure they are getting the best deal.
The new AvivaPlus service will not replace Aviva’s standard car and home insurance offering and customers will still be able to buy a regular home insurance or car insurance policy.
No monthly interest
There will be no interest added to the monthly payments of AvivaPlus customers.
No cancellation fee
There will be no cancellation fee if you decide to leave AvivaPlus. So if you see a better deal elsewhere you can just cancel and stop paying each month.
There’s also no notice period, so you can cancel your policy at any time.
Renewal price guarantee
If you choose to renew your policy then AvivaPlus guarantees that the price of monthly premiums you are quoted will be the same or better than a new customer.
However, this doesn’t mean Aviva will match the prices quoted by competitors or that your premiums won’t increase each year.