Direct Line: Home insurance Renewals

tickettoride

Direct Line offered my sisters home insurance renewal for 2015 with a massive £600 increase for. 2 bedroom terraced house in Sussex yet she had no claims in the previous year she had been insured with them. The new annual premium for buildings and contents was £1900 ! Approached Direct Line who confirmed there was no mistake. Comparison web sites offered cover from £160 per annum. Maybe this is why Direct Line are not on comparison web sites but choose to advertise using Hollywood characters from Pulp Fiction.... come on Direct Line is this how you treat all your policyholders at renewal?

TrickyDicky101

Why on earth was she paying £1300 in the current financial year? Has she made a habit of claiming in the past?

dunstonh

Insurers will often price people they dont want with intentionally uncompetitive quotes to act as a passive blocker.

There is clearly something about your sister or her property that they do not like.

eddddy

tickettoride wrote: »

Direct Line offered my sisters home insurance renewal for 2015 with a massive £600 increase for.
...
Comparison web sites offered cover from £160 per annum.
...

It would be interesting to know if the other Direct Line Group brands were offering quotes on the comparison websites, and if so, what they were.

It's interesting to see how Direct Line Group categorise their brands:

Direct Line... We target customers with a high brand affinity...

That sounds a bit like they mean loyal customers who are unlikely to check comparison websites.... (and renewal premiums might reflect this).

Churchill... We target customers with a high brand affinity and that value the need for support.

Ditto... but with better service

Privilege targets customers who mainly buy through PCWs [Price Comparison Websites]

So that's people who tend to use comparison websites .... (and again, renewal premiums might reflect this).

Source: http://www.directlinegroup.com/our-approach/business-model/brands/brands.aspx

tickettoride

She moved into the property in 2013 and took out householders comprehensive policy with Direct Line as they were the incumbent insurers. She had 10 claims free experience on a previous house in the same town. Accepted the £1300 premium since the new property was located near a river. Had she gone on a comparison web site at the beginning, she would have saved over £1000.
In my experience financial organisations and utilities with annually renewable contracts will entice customers with low rates in year one in the belief that their renewal terms will be automatically accepted. Often, when challenged, they will reduce rates.

Browntoa

comparison tools aren't an accurate indicator of high risk properties quotes

tickettoride

She moved into the property in 2014 and took out householders comprehensive policy with Direct Line as they were the incumbent insurers. She had 10 claims free experience on a previous house in the same town. Accepted the £1300 premium since the new property was located near a river. Had she gone on a comparison web site at the beginning, she would have saved over £1000.
In my experience financial organisations and utilities with annually renewable contracts will entice customers with low rates in year one in the belief that their renewal terms will be automatically accepted. Often, when challenged, they will reduce rates.

tickettoride

Browntoa wrote: »

comparison tools aren't an accurate indicator of high risk properties quotes

Whilst insurance comparison web sites do not necessarily include all insurers, a fact that Direct Line uses to promote their insurance business, nevertheless in this case they have been shown to exploit this policyholder.

However, if, as you say comparison tools are not an accurate indicator. I assume this is because you have accepted Direct Line's marketing position of degrading comparison tools. What are comparison tools if they are not an indicator of risk since premium level is determined by risk.

dunstonh

In my experience financial organisations and utilities with annually renewable contracts will entice customers with low rates in year one in the belief that their renewal terms will be automatically accepted. Often, when challenged, they will reduce rates.

Yes they will. However, the scale of difference in the pricing is more than early year discounting.

nevertheless in this case they have been shown to exploit this policyholder.

No they haven't. They offered their price. She did not accept and went elsewhere.

katejo

tickettoride wrote: »

Direct Line offered my sisters home insurance renewal for 2015 with a massive £600 increase for. 2 bedroom terraced house in Sussex yet she had no claims in the previous year she had been insured with them. The new annual premium for buildings and contents was £1900 ! Approached Direct Line who confirmed there was no mistake. Comparison web sites offered cover from £160 per annum. Maybe this is why Direct Line are not on comparison web sites but choose to advertise using Hollywood characters from Pulp Fiction.... come on Direct Line is this how you treat all your policyholders at renewal?

I recently renewed with Direct Line. I have a similar house but in London E17. My renewal quote was around £350 but got reduced when I said that I would move elsewhere. Obviously I don't know what cover your sister has (for valuables, accidental damage and the other options) but £1900 is extremely high. I have never paid more than just over £400.

dacouch

tickettoride wrote: »

Whilst insurance comparison web sites do not necessarily include all insurers, a fact that Direct Line uses to promote their insurance business, nevertheless in this case they have been shown to exploit this policyholder.

However, if, as you say comparison tools are not an accurate indicator. I assume this is because you have accepted Direct Line's marketing position of degrading comparison tools. What are comparison tools if they are not an indicator of risk since premium level is determined by risk.

If you understood the history of Insurance you would understand why Direct Line chose not to appear on comparison websites.

The only way to buy any type of Insurance was to buy via your local High Street Insurance Broker.

Direct Line (Although not the first) decided to cut out the broker and allow the customer to contact them and do business directly through them. This was accompanied by a huge marketing campaign and a number of innovations such courtesy cars when you had an accident.

As their whole ethos has always been to cut out the middleman it does not make sense for them to start appearing on comparison sites who are in effect a middle man. If you add in that their product and service is above average, if they appear on a comparison site the only way they can obtain business in a market where customers only look at the top three cheapest companies would be to cut their cover and service back