Direct Line, usual renewal scam...

isofa

So our DL home insurance postal (automatic) renewal came and we've go to the Direct Line website to see if we can get a better quote, which we have, over £300 cheaper than the frankly ridiculous auto-renewal.

Telephoned to get it matched, their "loyalty" dept refused, best they could do was £100 more than the online quote, for the indentical cover. So we now have to cancel, let it lapse and take a new policy out the next day. Waste of everyone's time.

It seems absolutely stupid.

(Have this issue every year with our cars), but at least they match it via the 'phone then.

Does anyone have a senior staff member's postal address, as I'd like to put this in writing to DL?

dogbot

It is not a scam, new customers are oftem provide with a marketing discount by insurers. If you are an existing customer you will not be entitled to that. They may give you a discount to stay if they want you to stay badly enough.

isofa

dogbot wrote: »

It is not a scam, new customers are oftem provide with a marketing discount by insurers. If you are an existing customer you will not be entitled to that. They may give you a discount to stay if they want you to stay badly enough.

You think it's not a scam to charge a loyal customer £300 more than a new customer for the exactly same product? :eek:

Well on that, we will have to agree to differ!

It's an utter scam – purely and simply. There should be good offers for loyal customers, it's easy business, but to assume they are stupid and won't check and go for an automatic renewal, in my eyes, is the height of a scam.

raskazz

isofa, how long have you been with Direct Line?

isofa

raskazz wrote: »

isofa, how long have you been with Direct Line?

Around 10 years, for both car and home, plus OH car for slightly less time.

esuhl

isofa wrote: »

You think it's not a scam to charge a loyal customer £300 more than a new customer for the exactly same product? :eek:

Surely this is the same as credit card companies who offer 0% interest rates to new customers? Or mobile resellers whose cashback offers only apply to customers joining a network, not porting an existing number? Would you consider these scams too?

I think it would be much fairer and more transparent to forbid such deals that rely on customers being too lazy to continually change providers (or cancel, then set up a new account). However, if these practices were banned, those who are happy to keep switching would probably end up paying more.

isofa

esuhl wrote: »

Surely this is the same as credit card companies who offer 0% interest rates to new customers? Or mobile resellers whose cashback offers only apply to customers joining a network, not porting an existing number? Would you consider these scams too?

I think it would be much fairer and more transparent to forbid such deals that rely on customers being too lazy to continually change providers (or cancel, then set up a new account). However, if these practices were banned, those who are happy to keep switching would probably end up paying more.

Well firstly I'm surprised that many of you are on the side of the insurance company... interesting :rolleyes: moonlighting at your desks are you?!

I believe it is totally dishonest to offer a product to a loyal customer for £300 more than that of a customer checking the price on the website - this is deliberate set to catch people out without the time, or knowledge to check up themselves. Just ringing up to query gets £200 off straight away.
If you are happy to be treated by a company like this, fair enough, I'm not. How can this be anything less than a scam. As a company director, I know how important loyal customers are, and treating them well...

You are verring off-topic, 0% deals for credit cards is standard, and people know this when they take them out, after 12 or 18 months this deal will expire and they'll be subject to the standard interest rate. This is fair and up front.

Mobile phone deals this is well reported and most people renegotiate at the end of their contract, it's been a big Martin Lewis thing over the past few years. That is essentially setup to rip off the customer who doesn't check and switch too.

Anyway, I'm on the side of the consumer, hopefully a few other people here are too...

missmilly

Same thing has just happened to me with More Than new quote is £120 less than renewal! I phoned to query it and was told to take out the new one online and then phone to cancel the existing one, even though it expires in a day or two. Mad, mad, mad if you ask me

Missmilly

headcase

I was paying £50 per month to Direct line for B& C. Got my renewal through and they wanted £80 per month or so, and if I canceled charge me £25pm. I went online and got quoted £50 pm by hiscox. i ring DL up and quoted the hiscox cover. I said I was leaving and was not prepared to pay the £25 leaving charge as an unfair contract. The person on the phone offered me the prices that new customers would get etc etc. After that, she quoted £46 pm for the same policy and I accpeted. All in 5 minutes.

olly300

isofa wrote: »

Well firstly I'm surprised that many of you are on the side of the insurance company... interesting :rolleyes: moonlighting at your desks are you?!

The only person who clearly has stated they worked in the insurance industry didn't comment on what you asked.

isofa wrote: »

I believe it is totally dishonest to offer a product to a loyal customer for £300 more than that of a customer checking the price on the website - this is deliberate set to catch people out without the time, or knowledge to check up themselves. Just ringing up to query gets £200 off straight away.
If you are happy to be treated by a company like this, fair enough, I'm not. How can this be anything less than a scam. As a company director, I know how important loyal customers are, and treating them well...

It's not a scam and not dishonest.

Lots of insurance companies clearly state on their website the discount is for new customers only.

If Direct Line don't state this then you need to complain to the company in writing and if the reply is not satisfactory, report them to the FSA.

isofa wrote: »

You are verring off-topic, 0% deals for credit cards is standard, and people know this when they take them out, after 12 or 18 months this deal will expire and they'll be subject to the standard interest rate. This is fair and up front.

Not necessarily. I have a MBNA card that every so often offers me another 3 - 12 months interest free credit.

isofa wrote: »

Mobile phone deals this is well reported and most people renegotiate at the end of their contract, it's been a big Martin Lewis thing over the past few years. That is essentially setup to rip off the customer who doesn't check and switch too.

If you are a company director then you are aware one of your functions is to ensure that your business makes a profit.

Different businesses do this in different ways.

Certain insurance items don't make large amounts of profit i.e. car insurance, so getting people to switch to them by discounting the first years premium and hoping they forget to change will generate more profit.

isofa

olly300 wrote: »

The only person who clearly has stated they worked in the insurance industry didn't comment on what you asked. It's not a scam and not dishonest.

It's not dishonest? Perhaps you'd like to define honesty to me.

So you are happy that it's not dishonest to offer the identical product to 2 different customers at a £300 price differential? The product is essential doubling in price, it's not £5, £10 or even £20, it's hundreds. Perspective is required.

In my world it is grossly dishonest.

olly300 wrote: »

Lots of insurance companies clearly state on their website the discount is for new customers only.

If Direct Line don't state this then you need to complain to the company in writing and if the reply is not satisfactory, report them to the FSA.

I have no problem with small discounts for new customers in theory. £300 is not small, and the on-line offer isn't just open to new customers, it's open to anyone (I used my original login details from which I track all my current polices on their site), so effectively I'm still an "existing" customer.

I'm looking for a senior manager to report to at the company, if you read my OP. I was aware this is a forum for consumer affairs, and championing the consumer against being ripped off; some of the retorts point otherwise

olly300 wrote: »

Not necessarily. I have a MBNA card that every so often offers me another 3 - 12 months interest free credit.

Well so be it, still off-topic as before.

olly300 wrote: »

If you are a company director then you are aware one of your functions is to ensure that your business makes a profit.
Different businesses do this in different ways.

Indeed, to make a profit, but not rip people off, nor profiteer. I would not allow any staff member, to ever quote such a variance in price, as to me as an educated and experienced member of society, I deem it dishonest. We trade on our reputation and recommendation. And I'm lucky to say we are very successful.

olly300 wrote: »

Certain insurance items don't make large amounts of profit i.e. car insurance, so getting people to switch to them by discounting the first years premium and hoping they forget to change will generate more profit.

Neatly summed up in one line. They are relying on people not realising and forgetting, and then getting stung by the huge increase in premium, this surely by it's very nature is wrong and... to bore you again... dishonest. It's an appalling way to do business.

In the past 10 years DL have made over £10K out of my household with zero claims. And it's fair to overcharge £300 to this loyal customer? Utter nonsense! This cheating behaviour is endemic in society (hang on I've got an expense claim to submit...), what a sad place to be a customer.