Churchill Automatic Renewal Con

raskazz

Mr_K wrote: »

It's a matter of fact if you renew with the same company every year you're be paying a significantly higher premium than new customers

No it's not. It might be the case with some insurers but it is not the case with all insurers. My company's private car product incorporates a renewal discount of a couple of percent. All other things being equal (and in the absence of any broker commission discounting) a renewal customer will pay less than a new business customer.

Mr_K

raskazz wrote: »

No it's not. It might be the case with some insurers but it is not the case with all insurers. My company's private car product incorporates a renewal discount of a couple of percent. All other things being equal (and in the absence of any broker commission discounting) a renewal customer will pay less than a new business customer.

I don't think company cars/business accounts apply to most people, different product all together.

lisyloo

What have you got against making opting out of autorenewal easier ?

I've got nothing against it at all.
Unfortunately I don't make the rules.

All i'm asking is an opt out tick box on the application form

Who are you asking?
liyloo and dunstonh on a forum?
Sorry, we don't make the rules.
Have you actually asked anyone that can do anything about it?

An opt out isn't there because the insurance companies profits are more likely to be impacted and customers would be in danger of getting value for money.

So, if they will be negatively impacted, what makes you think they will agree to your plan/request?

gordikin

Mr K have you seen the recent thread/poll on Churchill's service started by MSE member 'jocobschi'? They do sound so good! They'll be top of my list for insurance, autorenewal or not. Which is irrelevant to me as I know when all my policies expire and proactively look after my finances as any member of MSE should!

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Mr_K wrote: »

I'm sorry you think £90 is an insignificant amount, multiplied by a 60 year driving career it adds up.

A £90 saving every year for 60 years? Good luck with that.

http://forums.moneysavingexpert.com/showthread.html?t=1984777

Mr_K

thanks for the Churchill recommendation guys, I'll bear it in mind. However i'm not with them, the OP was. He isn't with them any longer though, apparantly he had problems with their autorenew policy.......

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You're not with Churchill???!!11

Is that because they're not the [STRIKE]cheapest[/STRIKE] best?

Mr_K

To Churchill's credit they do have that lovely dog thats in adverts every 5 mins. Don't know where they get the money from...... :rolleyes:

dunstonh

Most people that complain about automatic renewals are those that havent read their renewal letter.

If you can get providers to make it optional, I have nothing against that. However, I dont see why people call them a scam or want them removed as they do no harm and can benefit a lot more people than lose out.

MarkyMarkD

Mr K seems to be ignoring the point, already made, that there are two different type of insurers:

(1) those who deeply discount for new customers and/or pay large commissions to introducers such as Quidco, but then charge a large premium in subsequent years and who tend to offer autorenewal; and
(2) those who do not deeply discount for new customers and/or don't pay large commissions to introducers, but then charge the same or similar premium in subsequent years; some of these offer autorenewal and some do not.

Is it not obvious that the entire business model of the first type of insurer is that they will lose a LOT of money in year 1, and make up a LOT of money in years 2 onwards?

Whilst the second type of insurer just makes a moderate (probably very small) profit in each year?

If you realise the above, then it's a clear choice - either you buy the cheapest policy, but will inevitably then end up moaning about (a) autorenewal and (b) the increase in premium in year 2 "for no reason" - or you buy the slightly more expensive policy, probably without autorenewal, but will then happily renew in years 2 and 3.

It's a nil sum game.

Unless you are prepared to take the cheapest (and not necessarily best value) policy each year, take the Quidco cashback, and suffer the minor inconvenience of autorenewal.

I have opted for each approach at different times and for different vehicles. I was with esure for many years - like dunstonh - because their premiums were genuinely good value, particularly with 75% NCD. More recently, I have bought policies from ultra-cheap insurers and taken the cashback.

Neither is right or wrong, but neither have I needed to complain about autorenewal because I can read renewal notices and act accordingly.