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    • DavidH72
    • By DavidH72 4th Oct 17, 10:38 AM
    • 6Posts
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    DavidH72
    LV quote lunacy
    • #1
    • 4th Oct 17, 10:38 AM
    LV quote lunacy 4th Oct 17 at 10:38 AM
    LV sent a car insurance renewal quote for £286 and, very sportingly, the advice that I may like to look around as they know it's a lot higher than the previous £227.
    So I did - and who should come up top of the list?
    LV - with a quote of £229!
    They've switched it accordingly, and my excess even dropped by £50...
    So, the initial renewal quote gets hiked up as they assume I'll stick with them, but they then suggest I try to search for a better deal. Counter-intuitive, perhaps? Only if they aren't top of the pile on a comparison site...
    I'm trying to get my head around their quoting policy, but the more I think about it, the less sense it makes...
Page 1
    • martinsurrey
    • By martinsurrey 4th Oct 17, 10:59 AM
    • 3,223 Posts
    • 3,925 Thanks
    martinsurrey
    • #2
    • 4th Oct 17, 10:59 AM
    • #2
    • 4th Oct 17, 10:59 AM
    LV sent a car insurance renewal quote for £286 and, very sportingly, the advice that I may like to look around as they know it's a lot higher than the previous £227.
    So I did - and who should come up top of the list?
    LV - with a quote of £229!
    They've switched it accordingly, and my excess even dropped by £50...
    So, the initial renewal quote gets hiked up as they assume I'll stick with them, but they then suggest I try to search for a better deal. Counter-intuitive, perhaps? Only if they aren't top of the pile on a comparison site...
    I'm trying to get my head around their quoting policy, but the more I think about it, the less sense it makes...
    Originally posted by DavidH72
    They don't make money from new customers, they make money from laziness at renewal.

    they KNOW that saying "why not look around for a cheaper quote!" wont spur the lazy on to do it, price comparison sites are such common knowledge now that if you are going to do it, you will.

    BUT they can claim corporate responsibility brownie points by writing that they advise people with large rises to look around.

    as a question, if they HADN'T said to look around, would you have anyway?
    • paddyandstumpy
    • By paddyandstumpy 4th Oct 17, 11:49 AM
    • 915 Posts
    • 409 Thanks
    paddyandstumpy
    • #3
    • 4th Oct 17, 11:49 AM
    • #3
    • 4th Oct 17, 11:49 AM
    They don't make money from new customers, they make money from laziness at renewal.

    they KNOW that saying "why not look around for a cheaper quote!" wont spur the lazy on to do it, price comparison sites are such common knowledge now that if you are going to do it, you will.

    BUT they can claim corporate responsibility brownie points by writing that they advise people with large rises to look around.

    as a question, if they HADN'T said to look around, would you have anyway?
    Originally posted by martinsurrey
    They put the text on there because the FCA has told them (and every other insurer and broker) to do so. Nothing to do with 'brownie points'
    • DavidH72
    • By DavidH72 4th Oct 17, 1:32 PM
    • 6 Posts
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    DavidH72
    • #4
    • 4th Oct 17, 1:32 PM
    • #4
    • 4th Oct 17, 1:32 PM
    Once I remembered what my original price was, yes - I always check if it's anything more than an inflationary rise!
    • rs65
    • By rs65 4th Oct 17, 7:30 PM
    • 5,293 Posts
    • 2,510 Thanks
    rs65
    • #5
    • 4th Oct 17, 7:30 PM
    • #5
    • 4th Oct 17, 7:30 PM
    They put the text on there because the FCA has told them (and every other insurer and broker) to do so. Nothing to do with 'brownie points'
    Originally posted by paddyandstumpy
    When did that happen? I know home and car insurers have to show last years price but when did insurers and brokers have to advise people with large increases to shop around? Got a link?
    • Quentin
    • By Quentin 4th Oct 17, 7:54 PM
    • 33,480 Posts
    • 17,358 Thanks
    Quentin
    • #6
    • 4th Oct 17, 7:54 PM
    • #6
    • 4th Oct 17, 7:54 PM
    When did that happen....
    Originally posted by rs65
    It hasn't!


    (Though there are a number of complaints about "last year's premium" being "inexplicably" overstated by certain unscrupulous household names!)
    • Amst
    • By Amst 4th Oct 17, 7:57 PM
    • 69 Posts
    • 30 Thanks
    Amst
    • #7
    • 4th Oct 17, 7:57 PM
    • #7
    • 4th Oct 17, 7:57 PM
    Once I remembered what my original price was, yes - I always check if it's anything more than an inflationary rise!
    Originally posted by DavidH72
    People like you would still complain about an inflationary rise. From my ten years in insurance the main thing I've learned is that tight people think insurance should go down EVERY year.
    • paddyandstumpy
    • By paddyandstumpy 4th Oct 17, 8:05 PM
    • 915 Posts
    • 409 Thanks
    paddyandstumpy
    • #8
    • 4th Oct 17, 8:05 PM
    • #8
    • 4th Oct 17, 8:05 PM
    When did that happen? I know home and car insurers have to show last years price but when did insurers and brokers have to advise people with large increases to shop around? Got a link?
    Originally posted by rs65
    It hasn't!

    (Though there are a number of complaints about "last year's premium" being "inexplicably" overstated by certain unscrupulous household names!)
    Originally posted by Quentin
    Same regs forcing last years price to be shown, says that if the client has been held for more than 4 years they need to also include the text stating the may get a better deal by shopping around.
    • paddyandstumpy
    • By paddyandstumpy 4th Oct 17, 8:09 PM
    • 915 Posts
    • 409 Thanks
    paddyandstumpy
    • #9
    • 4th Oct 17, 8:09 PM
    • #9
    • 4th Oct 17, 8:09 PM
    https://www.fca.org.uk/firms/transparency-insurance-renewals

    As above. Last bullet point is what I'm talking about.
    • Quentin
    • By Quentin 4th Oct 17, 8:15 PM
    • 33,480 Posts
    • 17,358 Thanks
    Quentin
    Same regs forcing last years price to be shown, says that if the client has been held for more than 4 years they need to also include the text stating the may get a better deal by shopping around.
    Originally posted by paddyandstumpy
    So actually no statutory "shop around" advice till they have held them a minimum of 5 years!
    • rs65
    • By rs65 4th Oct 17, 8:20 PM
    • 5,293 Posts
    • 2,510 Thanks
    rs65
    https://www.fca.org.uk/firms/transparency-insurance-renewals

    As above. Last bullet point is what I'm talking about.
    Originally posted by paddyandstumpy
    Thanks. So not as straightforward as I read your earlier post. Brownie points can still be earned as described by the OP.
    • paddyandstumpy
    • By paddyandstumpy 4th Oct 17, 8:30 PM
    • 915 Posts
    • 409 Thanks
    paddyandstumpy
    So actually no statutory "shop around" advice till they have held them a minimum of 5 years!
    Originally posted by Quentin
    Sorry I confused 4 renewals with 4 policy years. The project to get the paperwork live in time was one of my last at my last role, and almost a year ago now. I'd forgotten the detail.


    Thanks. So not as straightforward as I read your earlier post. Brownie points can still be earned as described by the OP.
    Originally posted by rs65
    I'd be surprised if LV would volunteer their client should shop around unless they were a long held client (and therefore duty bound to have done so).
    Not sure how they have therefore earned brownie points?
    • rs65
    • By rs65 4th Oct 17, 8:53 PM
    • 5,293 Posts
    • 2,510 Thanks
    rs65
    Not sure how they have therefore earned brownie points?
    Originally posted by paddyandstumpy
    I read the first post as verbal advice given but maybe it was part of the renewal notice.
    • DavidH72
    • By DavidH72 4th Oct 17, 9:58 PM
    • 6 Posts
    • 0 Thanks
    DavidH72
    People like you would still complain about an inflationary rise. From my ten years in insurance the main thing I've learned is that tight people think insurance should go down EVERY year.
    Originally posted by Amst
    I'm not sure what you mean by 'people like me.' I think you're making a lot of assumptions and ignoring what I actually said.
    I'm not complaining about a small yearly rise (once NCD is maxed) but a 30% increase is unreasonable, especially when they are advertising a rise of less than 0.5% on an alternative platform. To suggest that I could look elsewhere and then come out top of the list with a far lower price suggests that they are being disingenuous at best.
    • DavidH72
    • By DavidH72 4th Oct 17, 10:00 PM
    • 6 Posts
    • 0 Thanks
    DavidH72
    Yes, this came as part of the renewal advice. I'm surprised that there is any statutory requirement to advise to look elsewhere but I think it's sensible, especially as I've been with the same provider for many years.
    • paddyandstumpy
    • By paddyandstumpy 5th Oct 17, 6:41 AM
    • 915 Posts
    • 409 Thanks
    paddyandstumpy
    OP, if you call their renewal team and tell them you've had the cheaper NB quote; they'll check it and match it.

    Most (if not every) insurer has this dual pricing with renewals, especially those held for a few or more years.
    Unfortunately loyalty doesn't pay and the insurer simply sees you as 'easy meat' and loads your price to offset the cheaper prices at NB.

    It's sage advice to shop around each year, spending an hour or so on the price comparisons usually pays dividends.

    Most insurers will then match an alternative quote or reduce their initial renewal offer at the very least; it's cheaper to retain a policy then get it back as NB and pay the exhorbitant aquisition fee from the price comparison websites.
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