Royal Bank Of Scotland - Direct Line Mystery!!!!!!

Pasquale_PG

I have had my Buildings/Contents insurance with Direct Line (RBS) for 10 years. This year's renewal - monthly premium up from £58 per month to £69. Hang on that's £800+ p.a. :eek: Quick phone call to "Loyalty" department: "We aren't competitive for you. Looks like we want you to leave. We think after 10 years claim free you are likely to claim!" (I paraphrase!)

Online quote from Churchill. £197 annual = £16pm. :T A no brainer even for me.

Hang on a minute - when the written quote arrives it looks like Direct Line (same layout, font etc!). Quick look for the Parent Company - RBS!

The really annoying thing is that my wife's uncle died recently paying Direct Line £70 per month for his insurance. Something isn't correct here. What is going on?

Mr_Man_Full_of_Love

They currently have 50% off for first year discount and another 15% if ordered online. No doubt the same poster will be back moaning next year when the cost rises from £197 to £420.:)
There's also a possibility that the excess is £200 instead of £50 to reduce the cost even further.

Mr_K

Mr_Man_Full_of_Love wrote: »

No doubt the same poster will be back moaning next year when the cost rises from £197 to £420.:)
.

At which point he should move insurer again. Its a bit of a pain but if they will insist on offering big discounts for new customers and penalising loyal ones they can't blame us for switching insurer every year.

Starrystarrynight

My home insurance renewal quote from an RBS owned company arrived today, more than double last year's premium. Took about 15 minutes to find a like for like quote which was less than I paid last year. Thank goodness for comparison sites, takes a lot of the work out of it.
Glad you found a better price, OP.

Pasquale_PG

Mr_Man_Full_of_Love wrote: »

They currently have 50% off for first year discount and another 15% if ordered online. No doubt the same poster will be back moaning next year when the cost rises from £197 to £420.:)
There's also a possibility that the excess is £200 instead of £50 to reduce the cost even further.

Yes - I will be checking back next year (moaning!). So who do you have your insurance with? Do you expect your premium to rocket if you haven't claimed? This is the point of this site isn't it? Pensioners shouldn't get ripped off.

Quentin

Pasquale_PG wrote: »

Pensioners shouldn't get ripped off.

In what way are they ripping off pensioners?

dunstonh

Pensioners shouldn't get ripped off

Why just pensioners? No-one should get ripped off.

However, there is nothing in this thread to suggest anyone is. So, the comment is irrelevant.

Do you expect your premium to rocket if you haven't claimed?

Yes. If you are getting first year discounts then expect an increase. Also, insurance is only partly about you. Its also about the cross subsidised pool and what happens to that.

This is the point of this site isn't it?

No its not. Its to find value for money and look for wrongs that can be put right. its not to whine about things you are mistaken about. Better to understand the reasons and the system and use it to your advantage. Thats more about what this site is about.

foggytown

Pasquale_PG wrote: »

Yes - I will be checking back next year (moaning!). So who do you have your insurance with? Do you expect your premium to rocket if you haven't claimed?

Why not? It was almost impossible to get many of my clients to understand one elemental point. (And I'm talking about supposedly "sphisticated and knowledgable" buyers for multinationals.) Every year rates went up they would trot out the old, "We haven't had any claims in the last X years! We should get a reduction." Then I would patiently try to explain that insurance risk is not so much what happened before as what might happen in the next policy year. Statistically, having had no claims for X years increases (even if only slightly) the chance you will have one in the coming year. Also (depending on the class of insurance) if it has been a bad claim year then your premiums will go up in response.

huckster

Pasquale_PG wrote: »

Yes - I will be checking back next year (moaning!). So who do you have your insurance with? Do you expect your premium to rocket if you haven't claimed? This is the point of this site isn't it? Pensioners shouldn't get ripped off.

If you are claim free and there are no issues to worry about e.g. subsidence, flood risk, then shop around EVERY year. Don't go for the cheapest as they are usually cheap for a reason and make sure cover is taken up with a decent company, with a premium rate that you are happy with.

Insurers have not rewarded loyalty of customers for many many years. The way it works now, is that Insurers offer a good premium for a year or two, then start to increase the premium. Those that stay for whatever reason are in effect subsidising the discounted rates being offered to new customers. I think that fairly summarises the way most companies now operate.

If you are pensioner, when your policy is due for renewal next year, get a quote from the AgeUK.org (Age concern). They have a competive policy, interest free monthly payment, decent Insurer in Fortis.