Insurance Companies Getting too smart?

michaels

So on renewal I always run my details through a few of the comparison websites knowing that the new customer deals from the current insurer will beat the renewal price.

But this time Esure give me a price 75% more than the renewal price if I put my exact details but 10% less if I change the house number to any other house on the street. IE they have figured out that people will see the new customer pricing if they use a price comparison website and have tweaked their price algorithm to stop this...sneaky barstewards.

dacouch

It's a new customer discount for new customers, so they're protecting it

InsideInsurance

Many have been doing it for many years

michaels

Yes but they are paying the introducer fee so it is costing them more to offer the new customer price than it costs them to do me a renewal - after all with the renewal there is not even the admin cost.

dacouch

michaels wrote: »

Yes but they are paying the introducer fee so it is costing them more to offer the new customer price than it costs them to do me a renewal - after all with the renewal there is not even the admin cost.

The nature of buying Insurance now days means Insurers offer discounts / subsidise the premiums of new customers to gain them as new customers with the hope of retaining them as long term customers.

It's the same business model as Sky TV use, phone companies, most web commerce shops, break down companies, electricity / gas and gyms etc etc.

All of the above try and ensure their new customer discounts only go to their new customers

forgotmyname

Saga wont even quote if your an exisiting customer and put your real details/address in.

InsideInsurance

forgotmyname wrote: »

Saga wont even quote if your an exisiting customer and put your real details/address in.

This can be due to online marketing message, you have potential issues of having an eye catching "20% off if you buy online" but then present the renewal price which is the same as over the phone. You find most have to dilute the message as "Up to 20% off if you buy online" or otherwise cover their ar§es.

EdGasket

I had the same thing with Admiral car insurance. To get an online quote I had to change my birth date. I changed it a little and bearing in mind I am an elderly driver should make no difference to the premium. So the quote was favourable and Admiral agreed to renew for that price. Then I asked them to correct the birth date (a day earlier) and the premium went up by 8.5% for 1 day difference in birth date. The operator wouldn't have it that it was a con for existing policyholders which it obviously is. They do not reward loyalty or give you a fair renewal quote.

Anyone know the consequences of just leaving my DoB a day different? I could always claim it was a typo or their system had made a mistake; then I would have get a reduced premium.

InsideInsurance

I found, as a consumer, that calling Admiral/ their sub brands, would generally get you a 25-30% discount just for asking on their renewal price

Insurance pricing is a complex thing for the likes of Motor and Home, whilst it can be a "loyalty penalty" it could also be other forces at work if you are changing details

OnanTheBarbarian

Insurers are just slime really when it comes to pricing and when it comes to claims.

Yorkie1

EdGasket wrote: »

I had the same thing with Admiral car insurance. To get an online quote I had to change my birth date. I changed it a little and bearing in mind I am an elderly driver should make no difference to the premium. So the quote was favourable and Admiral agreed to renew for that price. Then I asked them to correct the birth date (a day earlier) and the premium went up by 8.5% for 1 day difference in birth date. The operator wouldn't have it that it was a con for existing policyholders which it obviously is. They do not reward loyalty or give you a fair renewal quote.

Anyone know the consequences of just leaving my DoB a day different? I could always claim it was a typo or their system had made a mistake; then I would have get a reduced premium.

Firstly it's insurance fraud, and if you were found out then you'd probably have the insurance cancelled -which would impact hugely long term as you'd have to declare this in future.

Secondly, as you've rung up they will have a record of the conversation and therefore your attempt to lie your way out if found out, wouldn't succeed anyway.