Direct Line

julia78

I have had both my house and car insurance with Direct Line for over 5 yrs. I recently re-newed my car insurance and had it was a nightmare. After getting over the stress of that, my house insurance was due. I currently pay £16 a month and when the letter arrived, I was "thanked" for insuring with them for the past 5 yrs!! However, my monthly payment had increased from £16 to... £33! I went on-line and it came up as £15.54 a month, same policy, same coover. After phoning them to ask WHY, I was told that I get an on-line discount plus a discount for having 2 insurance policies. In the end, I had to cancel my current direct debit and register as a new customer. I dread the day when I am old and vulnerable... note to all!! THEY SHOULD BE ASHAMED OF THEMSELVES :mad:

Steve1981

you will find most, if not all insurers offer an online discount of some sort, its cheaper for them as they dont have to pay the sales staff. New business (including online) discounts are generally for year one only - as in the second year you use the call centres to renew - as such you are neither new business nor online and therefore those discounts dont apply. I dont see that they have done anything to be ashamed of, they offered you a renewal you went online for further discount and got a cheaper price which you accepted. they are happy as they have kept a customer (albeit not at the original renewal price) and you are paying less than you paid last year and remain with a company thats uk based on the most part does well in customer opinion polls. your both winners.

I, and I would imagine most people, do the exact same thing each year. Our house and car have both been with the same insurer for the last 5(maybe 6) years and each time we have followed the above - unfortunatly its hasnt always been cheaper than the previous years price, but it has always been cheaper than the renewal.

Its easier for a company to keep a customer when they have them already than it is to get customers in the first place

julia78

You say it is easier to keep a customer when they have already have them than it is to get customers in the first place... Would seem it is easier for them to get new customers by luring them with better prices than it is to reward a faithful customer!

Steve1981

julia78 wrote: »

You say it is easier to keep a customer when they have already have them than it is to get customers in the first place... Would seem it is easier for them to get new customers by luring them with better prices than it is to reward a faithful customer!

its a fact that over half of customers simply renew with the company they are with without shopping about, this is depsite it being easier than ever before to get prices from across the board. in previous years increases of 5-10% were not uncommon (where nothing on the policy had changed) in the current climate increases of 20-25% appear to be coming more common.

as an insurer if you know that half your customers dont look elsewhere (and stats show that Direct Line customers are loyal) and even if they did go on your website to get a cheaper price tehn of course you are going to use that to your advantage.

retaining customers is something that if done correctly takes care of itself, getting new business is what will increase the customer base and so thats where the discounts are offered.

customers loyalty is not something that is rewarded as much as is often thought, insurers are aware that for the most part the reason a customer stays with a company for 5-10-15 years is more to do with teh fact that they cant be bothered to look around, or they are happy with the price they are quoted each year, in most instances it will have very little to do with a customers loyalty to a brand or the way that it does business. there will be instances where customers have had claims or feel that contact with a company is particulary good and will stay for that reason, but again if there was a price that was dramatically better they would be off like a shot.

for me when it comes to policies (for both home and car) it boils down to a few things,
1) Am I getting the cover that I need (not so much what I want but what I need - no point demanding a rebuild of 1 million if 150k will do the job)
2) Where are the call centres based
3) What benefits do they offer that are unique
4) Can I contact them (if need be) outside of office hours, and over the phone
5) How quick do i get through? (personaly I would never set up a pol online without ever having spoken to the company)
6) Staff attitude/willingness to help (same reason as point 5)
7) Price, I would never take a policy just because it cost less, often you pay for what you get, but if its a balance of pay more but get more Id be happy with that

julia78

All I am saying is that I am thankful I still have my wits about me to realise that I can "shop" around rather than taking the first option given to me by a company which is supposed to be one of the best.

Steve1981

I appreciate that Julia and im just saying that they have treated you no differently than any other insurance company would have treated you or any of their own customers at renewal time. and your right in that the opinion surveys often list direct line as one of the best. I get that it can be infuriating in that often its cheaper as a new customer than an existing one but its nothing personal its just business.

if a bar owner offers 2 for 1 or a relaunch night, its not aimed at the customers who already go but to drive in new customers, the existing customers can still take advantage of the offer if they want to go, same as you or I can go online.

what does me is when you dont get the best price first at renewal, they expect you to check other prices and then come back to them.For me thats more time consuming and more of a pain

Geoffo_M

Totally borne out by my experience today

http://forums.moneysavingexpert.com/showthread.html?t=2170913

mark5

My wife is one of those ppl who would just let insurance roll over one year to the next without challenging the quote. Wasting money just doesnt bother her. I also have friends exactly the same. Insurance companies make a fortune off these ppl. Its up to the individual to get the best insurance for the best price. The insurance company is just trying to make as much profit as possible!

eschaton

julia78 wrote: »

I have had both my house and car insurance with Direct Line for over 5 yrs. I recently re-newed my car insurance and had it was a nightmare. After getting over the stress of that, my house insurance was due. I currently pay £16 a month and when the letter arrived, I was "thanked" for insuring with them for the past 5 yrs!! However, my monthly payment had increased from £16 to... £33! I went on-line and it came up as £15.54 a month, same policy, same coover. After phoning them to ask WHY, I was told that I get an on-line discount plus a discount for having 2 insurance policies. In the end, I had to cancel my current direct debit and register as a new customer. I dread the day when I am old and vulnerable... note to all!! THEY SHOULD BE ASHAMED OF THEMSELVES :mad:

Get over it, that's the way the business works.

Quote

mark5 wrote: »

The insurance company is just trying to make as much profit as possible!

Those crazy insurers...

dacouch

Apparantly by cutting out the middleman it saves you money