Insurance renewal question

julliff

Hello all

I have received my renewal quote from Lloyds for my buildings and insurance. Needless to say, it has increased from last year.

My question is, to all you savvy MSE'ers, could I buy a NEW policy with Lloyds using the quidco cashback site, and take advantage of the £90 cashback, or would it be blocked because I am an existing customer?

Many Thanks

LadyIndecisive

You are effectively planning to defraud the insurer by mis-representing yourself as a new customer to pocket £90 and your only query is will they find out?

tinkerbell84

LadyIndecisive wrote: »

You are effectively planning to defraud the insurer by mis-representing yourself as a new customer to pocket £90 and your only query is will they find out?

:rotfl: :rotfl: :rotfl:

OP - there is nothing to stop you doing this and many on here do.

dunstonh

needless to say, it has increased from last year.

Why do you say that? I see many that go down as well as many that go up. It isnt a safe assumption to say it will go up every year.

There is nothing to stop you doing what you say. Until the insurers decide to stop it from happening and suffering losses on these policies, there is nothing to stop you doing it.

LadyIndecisive

It isn't a safe assumption that insurers aren't monitoring this. I think many will be withdrawing from the cashback sites IMO.

dunstonh

LadyIndecisive wrote: »

It isn't a safe assumption that insurers aren't monitoring this. I think many will be withdrawing from the cashback sites IMO.

NU did say in the past they were going to stop buying insurance business and running it at a loss. They did for a short while but no-one else did so they lost market share. Now they are back doing it again.

You would think that they cannot keep doing it but at the moment it is still a relatively small number in terms of the number of policies out there. Plus, shareholders like market share figures to improve generally. The more people do it, the more likely the loopholes that allow it will close.

worried_jim

I buy a new policy with Barclays every year and always do it as a new customer and always get it cheaper then if I was to renew it.

LadyIndecisive

I wonder if some insurers are giving cashback when a customer is moving between brands owned by the same firm?

julliff

Why would I be defrauding the insurer, by going throught the cashback site? I will be using all my true credentials. The question was not will they find out, but is it allowed.

If indeed it is tantamount to fraud, then I will simply shop around and use a different company where I can get the cashback. Shame as I would like to retain business with Lloyds, but in the current economic climate, I need to save money (wich is why I'm on this site in the first place).

Also, isn't it one of Martins premises that insurance companies effectively hike the cost of the renewals, hoping that inertia will make people just stick with the same policy?

dunstonh

Also, isn't it one of Martins premises that insurance companies effectively hike the cost of the renewals, hoping that inertia will make people just stick with the same policy?

I dont know but it would be a wrong assumption. Or at least the wrong conclusion. Many products are retailed with a year 1 discount. So for these, you are almost certainly going to see an increase in year 2.

My experience is that the plans that dont tend to have year 1 discounts tend to be the plans that have more consistent premiums year after year and can show drops.

julliff

Just checking, but I definitely read it somewhere here.

Apply for cover from your existing insurer as a new customer and it’s likely you’ll be given a cheaper price. This is because home insurers like any company will happily profit from apathy if they can. It’s for this reason renewal notifications are sent as near to renewal as possible; as then you’re pressured for time and less likely to try and find a cheaper price.

The article is here:

http://www.moneysavingexpert.com/insurance/home-insurance

I'm really confused now, as the impcation on this thread seems to be that it is ethically wrong to use the cashback site to renew as a new customer.