motor insurance ploy

[Jim Hawkins]

Can't find a suitable newsgroup, so please forgive me asking here...

Last year, fully comp insurance from Direct Line on my 2002 Vectra 1.8l LS Estate, with 9 years NCB, was 193 This year, with no change to cover and no claims, their written offer is

339 - a whopping 75% increase. On ringing them to ask why, I was transferred to someone who proceeded to look up my account and then said he could approve a reduction to 235 ! The snag was that he said that he could not confirm this in writing - I would have to allow the renewal to go ahead as received, and accept his word that the charge would be reduced to 235. Luckily I have a week or two to decide what to do before the present policy expires.

But has anyone else met this business of offering a highly inflated 'quote' and hoping the punter won't object ? If so, and they agreed, did the insurer live up to the promise ?

[Nick Odell]

They've been talking about this a lot on Moneybox on BBC Radio 4 recently. That and home insurance that does the same. One example had a well-known company for insuring the elderly charging a regular renewal 5 times (that's _five_ times) the premium for new business. The gist of it is, get a better quote elsewhere then go back to your original company and let them beat it for you. Or just tell them to sod off and buy elsewhere anyway. There's no reward for loyalty seems to be the latest mantra.

Nick

[Theo Markettos]

uk.rec.cars.misc? uk.finance?

Pay the renewal by credit card over the phone, and scream at the card company if the payment in incorrect? Cancel the direct debit just to be sure.

SOP for insurance. Punter rings up to say 'but I can get it for £x at ' and all of a sudden the quote comes down. Or do a 'new customer' quote on their website and then ring to complain that you're being charged more for a renewal. Or just move elsewhere.

Theo

[Andrew Gabriel]

It's the norm.

If you want to stay with them, go to their website and get a quote as though you are a new customer.

I was getting ready to do this, but my renewal came in at less than last year, so I just stuck with it.

[Dave Plowman (News)]

I'm surprised this hasn't happened to you before. Most insurance companies do the same - hoping you can't be bothered to shop around.

DL did just this to me some years ago with the house insurance - upped it by 45%. Got a quote on their website - using the same details - for less than 1/3rd of the renewal premium. And I also had two cars insured with them.

So I wrote to them and never got a reply - just a letter acknowledging mine. So I changed everything to different insurers.

I would like to know why they prefer to go for new unknown customers, rather than keep their good existing ones happy.

[Brian Gaff]

Its not just motor insurance it seems to be on everything these days. one seems to be expected to barter. I suspect in most cases playing one company off against another could reduce costs even more.They rely on inertia to get them at least enough mugs who will pay the higher costs to allow them to appear flexible to the others . Brian

[Brian Gaff]

Or pay it with the text of the new quote attached via a cheque only for the amount agreed in audio. If they have not got a card or dd then if they complain you know they are not to be trusted. Brian

[Martin Brown]

It is a try on.

Put it in writing if you want the business usually works. Failing that get another decent quote and challenge them to match it or if it is good enough and from a reputable company jump ship write and tell them why. It won't do any good though unless we all do it.

You should have learnt by now that customer loyalty is punished and exploited to the full by "customer care". You have to be serially disloyal to get the best deals and most people cannot be bothered.

It is a classic what you measure and reward gets controlled problem. Sales staff are rewarded with bonuses for bringing in new business but not for keeping old customers on board.

[harry]

Happens to virtually everyone. You need to accumulate a list of 0800 numbers and be prepared to spend some time on the phone. I found Aviva to be cheapest last time

They are all f***g crooks.

The trouble is, you never know how good your insurance is until you try to claim.

The other trouble is, you are dealing with a host of middle men, you never know who you actually end up getting insured with.

[harry]

Good advice. But the website may "recognise" you.

[Jim Hawkins]

I tried to access both these (and others), but failed. I suspect that only some newsgroup providers list them

[Jim Hawkins]

The other infuriating ploy is for them to keep you on the line (premium rates of course!) while they insist on reading out to you reams and reams of stuff about the policy, about you, about your car, etc, etc. Then having to transfer you to someone else who insists on going through the same routine all over again. I'll never renew an insurance policy on line again.

[Lobster]

I suppose it could be argued that the high "renewal" prices are the real ones; ie the amount the companies need to charge for their business model; and that the initial premium is a loss leader to attract new business.

[Jethro_uk]

Say no to 0870:

[David]

Had a strange one. Received renewal quote of £378 in December from RAC Services, automatic renewal. In mid January when it was due I checked the website to download policy etc. and see that they have charged £429. Phone call to them and most apologetic, they agree renewal price was £378 and cannot explain why it has been charged at £429. At least refunded on card straight away. Got a new car at end of Feb, guess who I didn't insure it with.

[Dave Plowman (News)]

That would only hold water if the price increase bore some relation to inflation, etc. Since it doesn't, it's a scam - pure and simple.

[Lobster]

Well, no - *if* the initial premium was genuinely a loss leader, then the difference between that and the year 2 price would have nothing to do with inflation.

[alan]

Just make sure the renewal tern and conditions are the same. It may be the same premium but watch they haven't increased your excess from a couple of hundred quid to a couple of thousand!

[Dave Plowman (News)]

Yes - but this thread is really about those who have been with a company for some time.

[Andrew Gabriel]

It amazes me that they don't, but so far when I've done it, they don't.