churchill - beware automatic renewal

dach

last year I took out house and contents with churchill for a very good price £288, the cover included all i wanted including accidental cover for both. I didn't realise I was signing to automatic renewal via my credit card. When the renewal came for the same cover the price was now £511!!
One phone call lowered the price to £326 and when I cancelled and took the exact same cover on a new policy with churchill the price was £265
Do they rely on people being too lazy to shop around to make them an easy £246?

mikey72

dach wrote: »

.......Do they rely on people being too lazy to shop around to make them an easy £246?

Yes.
.

cabbage

I hate automatic renewal but when you take it out there doesn't seem to be an opt out button so most are put on automatic renewal. You are always told at renewal and then we promptly ring them up and ask them to cancel the automatic renewal. Its a pain!

dunstonh

Do they rely on people being too lazy to shop around to make them an easy £246?

Most people renew with the same provider. So, it is a cost saving to the provider to cater for the majority.

The argument some may make is that auto-renewal catches out those too lazy to read their renewal letter.

mikey72

dunstonh wrote: »

Most people renew with the same provider. So, it is a cost saving to the provider to cater for the majority.

The argument some may make is that auto-renewal catches out those too lazy to read their renewal letter.

Do you really mean it's cheaper for the insurer to renew, although they charge £511, than to start a new policy at £265?
So they make even out of the customer for misplaced loyalty?

dunstonh

mikey72 wrote: »

Do you really mean it's cheaper for the insurer to renew, although they charge £511, than to start a new policy at £265?
So they make even out of the customer for misplaced loyalty?

In this case the reason not to renew is obvious. However, very many people stay with companies that dont make big year 1/2 discounts and provide stability instead.

This type of provider is not suited to that loyal consumer. Its suited to the quote portal shop around type.

Mr_Man_Full_of_Love

Do the experts in this field think that the 50% first year discount with people constantly changing insurers is a sustainable business model? Or will it at some point come full circle and companies will start rewarding loyalty instead?

mikey72

Mr_Man_Full_of_Love wrote: »

Do the experts in this field think that the 50% first year discount with people constantly changing insurers is a sustainable business model? Or will it at some point come full circle and companies will start rewarding loyalty instead?

The 50% discount is marketing hype. It sounds better than 100% penalty for loyalty.

adamc260

cabbage wrote: »

You are always told at renewal and then we promptly ring them up and ask them to cancel the automatic renewal. Its a pain!

Wouldnt be a pain if you forgot to renew and had a car accident

mikey72

adamc260 wrote: »

Wouldnt be a pain if you forgot to renew and had a car accident

Wouldn't it be a pain if you paid £511 for something they would sell you for £265 for exactly the same thing, if you asked them to, and you'd still be just as covered if you had an accident?
Oh, hang on a minute....................

adamc260

mikey72 wrote: »

Wouldn't it be a pain if you paid £511 for something they would sell you for £265 for exactly the same thing, if you asked them to, and you'd still be just as covered if you had an accident?
Oh, hang on a minute....................

I agree that loyalty doesnt pay but thats life