Another new way of charging more for car insurance

Bigphil1474

I get really annoyed when my car insurance renewal premium is hiked up, then they try and 'see what they can do'. I always stay with the same company if they offer a reasonable renewal price. Don't mind if it goes up a couple of quid if I've had good service, but when they start asking silly amounts I'm off. I was with Tesco for 2 years paying about £240 a year, and the renewal price this year was over £400. Now with Aviva paying about £220 a year. Prior to that I was with Kwik Save for 3 years and they were great when I had to make a no fault claim, but they did the same thing, which was when I went to Tesco. Will they ever learn, or more pertinently - will they ever stop trying to rip off their customers.
Far as I know, you don't need to send new insurers proof of no claims - it's all on the 'database'. They know everything.

Razoo

Bigphil1474 wrote: »

I get really annoyed when my car insurance renewal premium is hiked up, then they try and 'see what they can do'.

The 'let's try in on and see how much we can get away with' renewal scam seems to be prevalent throughout the insurance sector (and the TV service/broadband/mobile phone sectors).

The apathetic have only themselves to blame if they overpay, but unfortunately the practice does impact on the less able - those who do not possess the means or ability to challenge the charge.

I always pursue SAGA's insurance price match offer. It's a little game we play twice yearly (my wife is also insured with SAGA). It does waste a bit of time, but if it works out, it's generally less hassle than setting up insurance with a new provider.

Most companies have a Retentions Department (i.e. a 'don't let them leave' team), who will offer a good discount rather than lose a customer.
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Razoo

pothole50

I had the same experience with a classic car insurance company I had been with for four years they wanted to charge £106.60, a quick call and a go compare comparison, found another company offering £87.80, the offer then dropped from £106.60 to £87.30.

AdrianC

Razoo wrote: »

To match a like-for-like quotation, SAGA would have to charge the same premium in total.

If SAGA match the price and then add a £20 renewal fee, then they will no longer be matching the like-for-like quotation.

This, with bells on. The only figure that matters is the final, bottom-line one, once all the "fees" and the like are added in. It really doesn't matter how they get to it. It's a pricing-by-obfuscation model that EasyJet and RyanAir started, and because suckers fell for it, it's spread. And still suckers fall for it - see all the threads here about buying used cars and finding an "admin fee"...

davybull

Car insurance makes no sense at all.

Got a quote on the meerkat site for my Impreza last month and opted to have a £500 voluntary excess.

Then I dropped the voluntary excess down to £100 and the quote came down £20.00!!!

Go figure that out!!

Dave.