Pretending to be a new client when renewing a policy

katejo

I am aware that clients renewing insurance never get rewarded for loyalty and i have moved insurer more than once. I have also heard of people who pretend to be a new client by going onto the current insurer's website and getting a new quote. I had always assumed that it would be rejected as the insurer would check it against their records and find that the client was an already existing customer.
I have also heard that this method has worked for some people. Why is that?

nidO

Some insurers check, some don't. Those that do, you can sometimes get away with entering nearly right details.

I recently had my building+contents renewal through with Aviva, I put through a new quote on their site but had to use next door's house number rather than mine, as they know my address is already insured with them so wouldn't give it a quote.

When the new quote for next door's house number (but otherwise all my right details) came out a bit cheaper than my renewal quote I called them, the guy on the phone then manually adjusted my new quote with the wrong address to the right address, which made the quoted price even cheaper still (his explanation for that was that the quote performs a soft credit check, with the wrong address I don't "exist" so got a default price, with the right address they could access my credit record correctly and got a lower quote), and they matched my renewal to that price on the spot.

Their explanation for the new quote being cheaper than the initial renewal was an "online discount" for the new quote and if my renewal had had that it would have been the lower price to begin with, supposedly they've applied me that discount for future renewals. We'll see next year.

thor

When it comes to home insurance, can anyone see a problem with letting the old policy lapse and then taking up the new(cheaper) policy at the same company? You would technically be a new customer again There would be a period where you are not insured but the risk of anything happening must be minute if you apply as soon as your policy runs out.

jellie

If you go through a quote on a comparison website, you should get a quote from your existing insurers at the new customer price. (excluding Direct Line and possibly a small number of others).

If you want to stay with your existing insurers, ring them up and tell them you will renew with them if they reduce your renewal price to the new customer price. I've done this with different companies and all matched the new customer price without question.

Alternatively, you can ring your insurers and haggle with them.

jaylee3

jellie wrote: »

If you go through a quote on a comparison website, you should get a quote from your existing insurers at the new customer price. (excluding Direct Line and possibly a small number of others).

If you want to stay with your existing insurers, ring them up and tell them you will renew with them if they reduce your renewal price to the new customer price. I've done this with different companies and all matched the new customer price without question.

Alternatively, you can ring your insurers and haggle with them.

Yep, I am sure it won't work with Direct Line. Our car insurance went up 35% in 2012, for no reason whatsover, and they simply said that it was 'because the prices have gone up!' I said that if they couldn't offer me a better deal, I would walk. They said 'sorry, that is the best we can do.'

We had never claimed and had been with them for ten years. We left.

We got a quote from another company via a broker, and it was a tenner a month less. The following year, it went down another fiver a month. Direct Line's loss; not ours.

Wammer

I have done this with Aviva. I had an existing car insurance policy, but generated a new quote in advance of the renewal coming in. I took out a new policy rather than renew the existing one without an problems. I didn't bother calling them to get them to match the new quote although I could have done.

InsideInsurance

thor wrote: »

When it comes to home insurance, can anyone see a problem with letting the old policy lapse and then taking up the new(cheaper) policy at the same company? You would technically be a new customer again There would be a period where you are not insured but the risk of anything happening must be minute if you apply as soon as your policy runs out.

There is no need for there to be a period whilst youre not insured as the two policies can butt up against each other.

The only "risk" is from a claims, and in particular fraud, perspective in that if you have been with them for 20 years claims free and claim your £3,000 TV fell off the wall on the day of renewal then no one will blink an eye lid. Buy as a new customer and call to make the same claim and you will almost certainly have to go through additional counter fraud checks as the system wont see your prior 19 years of being a good customer with them.

In rarer cases then goodwill may be slightly more frequently given to long standing customers than brand new ones

Very rarely you will also find term changes that only apply to new policyholders and those renewing have more favourable terms, and this could partially explain price differences. Most commonly insurers want to maintain common terms so new business and renewal customers on the same date have the same terms but occasionally it doesnt happen.

Whilst the above is true, the reality is that for the majority of people the saving of being a new customer each year will outweigh the slight issues it may create.

thor

InsideInsurance wrote: »

for the majority of people the saving of being a new customer each year will outweigh the slight issues it may create.

This is what I am hoping for. Also starting anew means you may be able to claim cashback from the likes of quidco.

SuperHan

It doesn't work with Admiral, as we have a multi car policy and they wouldn't quote me on their website when I tried to get another quote.

However, when I redid the quote switching the main policy holder around (both people were insured on both cars), we got a huge reduction, even though there was actually zero change in the policy and who was driving and who was main driver on each car.

We rang up and they matched the price for renewal as there is more admin in switching it around. Silly, really, that they wouldn't quote one way but would the other.

M271

I have both my contents and house insurance with Direct Line (not automatic renewing). I have a website 'account' with them where I can see my policies, I logon to my account and can still get a new quote which last time under cut my renewal letter quote by 35%. I just ignore the renewal letters and 'renew' online with the new quote.

GingerBob_3

I always try the comparison sites with bogus, but realistic, data before proceeding to insure. In almost all cases I get a good-matching quote.