- January 27, 2018
- Bob Quinn
What’s going on with VHI? They cut a raft of plans before Christmas and have just announced that from March, 62 of their plans will be between 5.5% and 10% cheaper.
The cynic in you, who has watched the premium for your VHI plan creep up steadily over the years, will say the price reductions will simply bring your plan back down to what it was last year.
So why haven’t you switched?
I know exactly why you haven’t switched – it’s a nightmare! A million plans (well, several hundred actually), different providers, and all those uncertainties about how switching will affect you should anything go wrong during the waiting period, which can be up to five years for pre-existing conditions.
It’s the tyranny of choice. The reptilian part of our brains (yes, we are all part reptile, apparently) can’t handle more than three options, so what are we supposed to do with 500?
VHI and other health insurers know that they can rely on a certain amount of customer inaction due to choice paralysis, which ensures a percentage of their customers will just stick with them because it’s just too complicated to switch.
But the good news is, price war or not, there is an easy way to navigate this most dreaded of personal finance jobs. Watch my video on getting the best value when renewal time comes around.
You wouldn’t expect me to sign off without making the point – which no doubt has already occurred to you – that the Irish private health insurance market is just like every other part of the financial services industry here; very expensive and unnecessarily complex.
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