AVIVA 64% increase in car insurance scam?

simonsez

just had my renewal notice from Aviva which tried to put up my car insurance premium buy 64% from £749 - £1,227. I contacted them to ask if there was any specific reason for the vast increase. They confirmed that there were no specific reasons and certainly nothing connected to any possible changes in my circumstances (of which there were none). I then went to their website and obtained a quote as a new customer, putting in exactly the same details and the quote came back at £653!
I then went back to Aviva to ask for an explanation as to why a 'new customer' is able to get a quote at just under HALF of an existing customer. It has been passed around various departments and they have tried to bamboozle me with all sorts of formula, market forces, variables etc and even said that I would be 'welcome' to take out the policy at the price that was offered online - which is very good of them to let me have the opportunity to purchase their product at the price they quoted!!
My point is this. Should I bother spending a lot of time pursuing this to try and get some kind of logical fair answer - like they hold their hands up to what they are clearly trying to do in exploiting the loyalty of existing customers - or should I just take out the online quote, (or go to another provider - of which there are plenty at the same price level) and not waste my time, as they are bound to bounce me around and not give me a straight answer.

dunstonh

Your post doesnt mention any scam.

I then went back to Aviva to ask for an explanation as to why a 'new customer' is able to get a quote at just under HALF of an existing customer.

You answered your own question. New customer discount.

My point is this. Should I bother spending a lot of time pursuing this to try and get some kind of logical fair answer

No.

InsideInsurance

New customer discounts, predominately funded by those who just renew without checking.

You could push for the abolition of new customer discounts but then you'd end up paying more each year -v- just accepting its how the industry works and make the most of it by shopping around each year

Aretnap

Sainsbury's gave me a voucher yesterday offering me £30 off my first online shop. My broadband provider gave me my first three months half price. And when I first joined my gym I got 13 months for the price of 12. Should I complain about these blatant scams as well?

simonsez

Aviva tell me that it is not the case that the much lower online price is a 'new customer offer'. They confirm that the online rate is available to anyone, old or new client, but only confirmed this AFTER I had checked online. My point is that despite calling them up to question the huge proposed increase, they did not offer me the online price until I actually had gone online to check the rates for myself. Then, and only then, did they say I could have the online price.
Being an existing customer appears to mean nothing to Aviva and customer loyalty does not even register. If this is standard industry practice, it is still an outright scam

InsideInsurance

simonsez wrote: »

Aviva tell me that it is not the case that the much lower online price is a 'new customer offer'. They confirm that the online rate is available to anyone, old or new client, but only confirmed this AFTER I had checked online. My point is that despite calling them up to question the huge proposed increase, they did not offer me the online price until I actually had gone online to check the rates for myself. Then, and only then, did they say I could have the online price.
Being an existing customer appears to mean nothing to Aviva and customer loyalty does not even register. If this is standard industry practice, it is still an outright scam

A) You are talking to call centre agents, they arent told how the pricing is made up, their computer just gives them a number. They mean well when they try and give a reason but its predominately repeating old wives tales.

"New Customer Discount" (or new business discount as I would call it) is not as literal as you have to have never had an insurance policy with them before. If you come to their website and get a quote then thats a new business quote. Only a few insurers systems are sophisticated enough to identify you as a returning customer and not apply discounts and even if they want to do this it plays hell with the marketing messages as you have to ensure they allow for these circumstances. A former client decided not to weaken their online message of discounts and lose new customers -v- blocking a modest proportion of existing customers that come back and get the new business discount each year.

As others have said, you get exactly the same with almost every other company out there. A company that makes knitwear that I like gives a 10% off your first order, had about 20 first orders over the years just by using a different email address on each order.

pvt

It's a sad situation, but this is how insurance works in the 21st century. It no longer appears to be possible to get a decent deal by automatically renewing with your existing insurer. I find myself invariably switching home and car insurance policies at virtually every renewal.

It is possible to get them to reduce the premium to a sensible level when you challenge them with their own 'new customer' quote, though even beating them about the head with that isn't guaranteed to work.

Companies do not want to reward loyalty, and encourage you to be an insurance tart. So I guess you know what you need to become...

[Deleted User]

simonsez wrote: »

just had my renewal notice from Aviva which tried to put up my car insurance premium buy 64% from £749 - £1,227. I contacted them to ask if there was any specific reason for the vast increase. They confirmed that there were no specific reasons and certainly nothing connected to any possible changes in my circumstances (of which there were none). I then went to their website and obtained a quote as a new customer, putting in exactly the same details and the quote came back at £653!
I then went back to Aviva to ask for an explanation as to why a 'new customer' is able to get a quote at just under HALF of an existing customer. It has been passed around various departments and they have tried to bamboozle me with all sorts of formula, market forces, variables etc and even said that I would be 'welcome' to take out the policy at the price that was offered online - which is very good of them to let me have the opportunity to purchase their product at the price they quoted!!
My point is this. Should I bother spending a lot of time pursuing this to try and get some kind of logical fair answer - like they hold their hands up to what they are clearly trying to do in exploiting the loyalty of existing customers - or should I just take out the online quote, (or go to another provider - of which there are plenty at the same price level) and not waste my time, as they are bound to bounce me around and not give me a straight answer.

Hi Simonsez

Thanks for your post.

First of all, I'm really sorry to hear about your concerns regarding the differences in premium between the online price and your renewal price. There could be a number of reasons why this has happened. For instance, if the cover/details differ then the price can vary.

In order for me to investigate this further and hopefully resolve the matter for you, can you please email the following details to social@aviva.co.uk -

Full name
Date of birth
Postcode
Policy number
Online quote number
Money Saving Expert username (so we can link your post to your details)

I hope this helps and I look forward to hearing from you soon.

Kind Regards

Stephanie

Aviva Social Media Team

RichardD1970

pvt wrote: »

It's a sad situation, but this is how insurance works in the 21st century. It no longer appears to be possible to get a decent deal by automatically renewing with your existing insurer. I find myself invariably switching home and car insurance policies at virtually every renewal.

It is possible to get them to reduce the premium to a sensible level when you challenge them with their own 'new customer' quote, though even beating them about the head with that isn't guaranteed to work.

Companies do not want to reward loyalty, and encourage you to be an insurance tart. So I guess you know what you need to become...

it's hardly a new phenomenon, in my 20+ years of driving I think I have only ever gone with a renewal quote once.

hcb42

yup, lost count of the number of times, I have had this conversation with that insurer with the red phone. In fact, just about to go through the same palaver once again with car insurance renewal. total madness but easier to go through the motions than fight the logic.

InsideInsurance

hcb42 wrote: »

total madness but easier to go through the motions than fight the logic.

Not only easier but cheaper. The more that autorenew at higher prices the deeper the discounts can be given to those that do shop around.