Insurance explained - what does 'New Business' mean?
Insurance companies can sometimes throw words and phrases around assuming everyone knows what they mean. Here we explain what's meant by 'New Business'.
'New Business' usually means a new contract. If you get a quote from a comparison website, you're being quoted as 'new business' as any policy you buy would be to cover a new risk being presented to the insurer.
Traditionally, insurance companies often gave discounts off their 'new business' premiums to attract new customers, but new rules mean insurance companies can't really do this for car and home insurance, unless they're going to give equivalent discount off their renewal customer quotes for the same cover too. Don't worry, we got you. Please check out our https://www.coverwiki.com/coverwiki/pricing-practices article for further information on this new rule.
You don't have to be a new customer in order to be quoted as 'new business' - if you already have a car insurance policy with an insurer and get a quote for your home insurance or even an additional car, the extra product would be quoted as new business.