Direct Line auto-renewal shocker

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  • forgotmyname
    forgotmyname Posts: 32,552 Forumite
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    I was with DL for many years, they were always the cheapest for me. then it shot up. They matched the quotes i had at the time which was quite a bit off the renewal price.
    But the following year they would not budge on the renewal price so i went elsewhere. I tried them again a couple of years back and they quoted just under £1000 when my insurance was approx £350.
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  • Aretnap
    Aretnap Posts: 5,215 Forumite
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    dauphin wrote: »
    I don't understand why you still seem bent on carrying on with Direct Line. You don't mention whether you have tried the comparison sites either now or over the past 15 years, but it would make obvious sense to find out what other insurers can offer.
    In fairness to Direct Line, the quality of their cover and (in my own experience) their customer service is better than average. Not necessarily the best there is, but certainly a damn sight better than the gidawful Gibraltar-based insurers you find at the top of the price comparison sites. If you can get a reasonably competitive quote from them you are probably better off sticking with them rather than saving a tenner by going to some dreadful pseudo-insurer.

    Do shop around, but don't choose insurance purely on price, any more than you'd choose a car or a pair of shoes solely because they're cheap. If the website quote is competitive there's nothing to stop you cancelling your renewal, then signing up for a new policy via the website.
  • mike004
    mike004 Posts: 128 Forumite
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    I did a search on a comparison site and many of the quotes were actually higher than the haggled DL price quote, or even the original DL price quote.
    Many of the insurers with a lower price I hadn't even heard of, except for Churchill, LVE and Privilege.

    The price comparison site did not return any results for Direct Line.
  • mike004
    mike004 Posts: 128 Forumite
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    LV= comp at £210, including legal cover seems OK. Also with windscreen cover.
    Better than the cover that DL were charging me £310 for.
  • Weighty1
    Weighty1 Posts: 1,181 Forumite
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    mike004 wrote: »
    The price comparison site did not return any results for Direct Line.

    That's because Direct Line don't quote via third party brokers, you have to go direct.
  • FutureGirl
    FutureGirl Posts: 1,252 Forumite
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    Privilege and Churchill are run by Direct Line as well, so if you had an accident and are with either, it'll still be the same people dealing with it.
  • Johnp2712
    Johnp2712 Posts: 3 Newbie
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    Had a shock around 2 years ago re my MIL. She was 92 and suffering increasingly with Alzheimer and had to go into a home. At that time we discovered that she was paying around £1200 for home and contents insurance with Direct Line by auto renewing. It seems it had been going up and up each year. When I did a new application just to see what it would be on similar cover with Direct Line they quoted around £200. Be warned.
  • dunstonh
    dunstonh Posts: 116,385 Forumite
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    Johnp2712 wrote: »
    Had a shock around 2 years ago re my MIL. She was 92 and suffering increasingly with Alzheimer and had to go into a home. At that time we discovered that she was paying around £1200 for home and contents insurance with Direct Line by auto renewing. It seems it had been going up and up each year. When I did a new application just to see what it would be on similar cover with Direct Line they quoted around £200. Be warned.

    It probably wasnt just renewing that was the difference.

    Insurance is a bit like other retails products. They change the policies over time. Adding things in. Taking things out. People on older plans have the benefits and terms of those older plans. It is not uncommon for older plans to go up in price as less people remain on those older versions. Also, the spread of risks becomes a smaller pool if the older plan covers something that is not present on a newer plan.

    Some older plans are based on sum insureds. Whereas most modern plans give an automatic amount of cover based on the property being standard construction and the number of bedrooms.

    Also, it is very common for people not to compare like for like. £1200 to £200 suggests more than just a premium difference on version of policy and lack of early year discounting. It suggests the cover is not comparable (although it could be a sum insured plan with annual indexation vs a bedroom rated plan).
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • paddyandstumpy
    paddyandstumpy Posts: 1,486 Forumite
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    I bet it's just price optimisation has taken over here. When you renew a risk year on year the insurer will see that, and optimise accordingly.
    This sharp practice is most prevalent in the 50+ market, with the 'specialist' providers out there (naming no names but the ones who do cruises are the worst for the IMO).
    Unfortunately there is no recourse on them for doing this, as the client has the option to shop around each year.

    Good for you for noticing and doing something about it, and it's a pleasant surprise to hear it's a different offender (variety is the spice of life!)
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