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General Chat Thread, Why do they do it? in General; Why do insurance renewal notices come through at a higher price than what you get if you take out a ...
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    Edu-IT's Avatar
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    Why do they do it?

    Why do insurance renewal notices come through at a higher price than what you get if you take out a new policy, then when you ring up to cancel the renewal, they tell you that they'll provide the same price? Why not just offer the best price in the first place? Waste of my time!

  2. 3 Thanks to Edu-IT:

    ButterflyMoon (10th January 2013), stevenlong1985 (10th January 2013), Tech1 (10th January 2013)

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    SteveBentley's Avatar
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    Because enough people will just accept the higher price without checking for them to make some money from it.

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    Because most people will just accept the higher price as it's easier to just let it auto-renew and so they get more money out of them.
    The last two times I've had to renew my car insurance, I've called up and feigned the whole "I've got a cheaper quote elsewhere so can I cancel please" and they immediately knock 10% off without any argument - they're happy to do it, but not going to pass up a chance to get more money

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    sonofsanta's Avatar
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    Profit by laziness. Does my head in.

    Think last time my Admiral multicar came through, I'd paid £550 the year before, renewal came in at £1100, actual quote on the web was £600. Just a waste of time.

    At least I get a fluffy meerkat toy for my woes each time, I suppose.

  6. Thanks to sonofsanta from:

    stevenlong1985 (10th January 2013)

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    elsiegee40's Avatar
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    For reasons we don't understand our renewal with Direct Line for our Volvo was less than last year... so we've just paid it

    Our annual travel insurance is another matter. We seem to alternate between The AA and Direct Line as the renewal is a stupid price and they won't drop it. We switch and then end up returning cheaply the following year. We haven't claimed.

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    I really don't get insurance company's! I've recently upgraded my car, I had a 99 fiat punto on third party and now I've moved to a 09 SEAT Ibiza Sport on fully comp and its £200 cheaper!

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    Warning for people as unobservant as me:

    Check all the details of the quote request form on the web. Last year I copied the details from my renewal across to another quote engine and didn't notice that they asked whether I'd had a claim in the last 5 years whereas my current insurer was only interested in last 3 years. I had a claim 4 years previous to that , so a month after I paid, I got a lovely letter in the post telling me that they had run checks, found that I had lied and they were therefore cancelling my insurance. But worse, they also informed me that the fact that I have now had insurance refused is a material fact which I must declare whenever I apply for any insurance. Ever tried getting insurance once you tell them that you've previously been refused? Now can't get any online quotes and have to go to specialist insurers or stick with my current insurers. Very expensive mistake.

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    I still feel that you should have a percentage of your cost returned to you if the year passes without claim.
    This would also be some incentive to drivers to actually take care knowing that say 40% of their costs could be refunded for driving properly.

    Biggest con ever, car insurance!

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    TechMonkey's Avatar
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    Quote Originally Posted by CHR1S View Post
    I still feel that you should have a percentage of your cost returned to you if the year passes without claim.
    This would also be some incentive to drivers to actually take care knowing that say 40% of their costs could be refunded for driving properly.

    Biggest con ever, car insurance!
    But, but, but how would the insurance companies afford to sponsor football clubs, provide stupidly large bonuses and benefits for their staff or spooge it away on silliness if they did that. Be sensible man!

  12. 2 Thanks to TechMonkey:

    CHR1S (10th January 2013), Miscbrah (10th January 2013)

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    Edu-IT's Avatar
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    Quote Originally Posted by sonofsanta View Post
    Profit by laziness. Does my head in.

    Think last time my Admiral multicar came through, I'd paid £550 the year before, renewal came in at £1100, actual quote on the web was £600. Just a waste of time.

    At least I get a fluffy meerkat toy for my woes each time, I suppose.
    Same company this time as it happens.

    And yes, I'll be happy to take out a new policy for the Meerkat. Which I have done.

    Hello Sergei!

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    bushby's Avatar
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    got my first car this month and my parents asked where do you want to look for insurance my response was.
    I WANT SERGIE THE TECHI, waiting for him to arrive now :P

    but i had the same when i was looking for bike insurance first was stupid, second ok, on renewal for the third year they told me i could get it cheeper else where, i replied but i like you and love the comany. that got me from £300 to £75
    Last edited by bushby; 10th January 2013 at 11:50 AM.

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    CAM
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    I got Sergei from renewing too. Admiral offered £100 less and Churchill, even though I'd been with them about 6 years without accident, would only match if I raised excess by £100. It was a no brainer, more excess or same excess and fluffy meerkat.

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    Quote Originally Posted by TechMonkey View Post
    But, but, but how would the insurance companies afford to sponsor football clubs, provide stupidly large bonuses and benefits for their staff or spooge it away on silliness if they did that. Be sensible man!
    I know right! What with pricing all those young men and women out of car insurance now, they've got less people to squeeze so prices HAVE to go up to pay for all those Jags for the cartel! Luckily if they decide your car's written off they get that off you too, so that's a little help in the pocket.

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    Quote Originally Posted by elsiegee40 View Post
    For reasons we don't understand our renewal with Direct Line for our Volvo was less than last year... so we've just paid it
    All things being equal you would expect the price to decrease at each renewal as you get another years' no claims discount. But of course insurance companies don't work that logically!

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    Interesting if marginally dated piece on profits and losses on the Parliament website: HC 591 The cost of motor insurance

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