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Existing customer posing as new customer

I've read about this on MSE in the past but is it all above board. Basically if a car insurance renewal comes in at £300, but you go onto the same companies website and re-enter all your details, it comes in at £200, is it ok to take it? I cant see anything in the t's and c's about it but wondered if all insurers were the same.
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Comments

  • Yorkie1
    Yorkie1 Posts: 12,670 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Yes, I did this this year with Direct Line. The new customer quote was cheaper than the renewal quote. I rang them up and they wouldn't match the new quote price with the renewal, but were OK with me just applying from scratch over the internet.
  • dunstonh
    dunstonh Posts: 121,282 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    I've read about this on MSE in the past but is it all above board.

    It isnt unlawful but some firms do have the ability to check and will not accept you as a new customer if they find out.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • vaio
    vaio Posts: 12,287 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    dunstonh wrote: »
    It isnt unlawful but some firms do have the ability to check and will not accept you as a new customer if they find out.

    I'd be interested to see what the FOS would say if they refused to insure you as a new customer
  • huckster
    huckster Posts: 5,590 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    They can't prevent people doing this, but what some companies will do is to check both records. If there is any missing information on the new policy e.g. claims made, they will write to people, as the new premium would be calculated on the wrong basis.
    The comments I post are personal opinion. Always refer to official information sources before relying on internet forums. If you have a problem with any organisation, enter into their official complaints process at the earliest opportunity, as sometimes complaints have to be started within a certain time frame.
  • dunstonh
    dunstonh Posts: 121,282 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    I'd be interested to see what the FOS would say if they refused to insure you as a new customer

    They dont refuse to insure. They refuse to offer new customer terms. As the application has applied on the basis of "new customer" when they are not, then there is little that the FOS can do about it
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • vaio
    vaio Posts: 12,287 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    I suppose that depends on whether there is a question along the line of "are you an existing customer" in the proposal process.

    If there isn't and I was given a quote which they later refused to honour because I was an existing customer then I can't see that decision getting past the FOS "treat the customer fairly" test
  • Meadows
    Meadows Posts: 4,530 Forumite
    Mortgage-free Glee! Hung up my suit! Xmas Saver!
    Horizon81 wrote: »
    I've read about this on MSE in the past but is it all above board. Basically if a car insurance renewal comes in at £300, but you go onto the same companies website and re-enter all your details, it comes in at £200, is it ok to take it? I cant see anything in the t's and c's about it but wondered if all insurers were the same.

    All we do in that case is ring up the current insurer and say why should we renew with you when comparison quote is X and they adjust the price.
    Everything has its beauty but not everyone sees it.
  • dunstonh
    dunstonh Posts: 121,282 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    vaio wrote: »
    I suppose that depends on whether there is a question along the line of "are you an existing customer" in the proposal process.

    If there isn't and I was given a quote which they later refused to honour because I was an existing customer then I can't see that decision getting past the FOS "treat the customer fairly" test

    If it isnt marked as a new customer incentive/offer (or various words to that effect) then they wouldnt have a leg to stand on.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Archergirl
    Archergirl Posts: 1,899 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    If you got the policy to start 1 min after the old one ends, you won't be an exsisting customer,(or will you.........?)
  • hcb42
    hcb42 Posts: 5,962 Forumite
    I do this all the time with direct line home..
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