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Car Insurance Renewal Prices

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MsLomasMsLomas Forumite
1 posts
MoneySaving Newbie
I recently had an e mail to remind me that my car insurance is due for renewal. I have gone on to one of these price comparison sites and have found the exact insurance I am on at the moment but £100 cheaper! Is it right that insurers can do this as it makes me a little uneasy that they can charge an existing customer more, and if I don't auto renew and just book a new policy it will be cheaper?? Should I trust this company?

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  • alfred1950alfred1950 Forumite
    20 posts
    10 Posts
    That's is normal...when you first take out insurance with a particular company they give you an introductory discount which you usually lose after the first year so the premium 'usually ' rises.
    Ring them up and tell them you've found cover cheaper elsewhere and they ' might ' knock some off ...if not go elsewhere.
  • HasbeenHasbeen Forumite
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    MsLomas said:
    I recently had an e mail to remind me that my car insurance is due for renewal. I have gone on to one of these price comparison sites and have found the exact insurance I am on at the moment but £100 cheaper! Is it right that insurers can do this as it makes me a little uneasy that they can charge an existing customer more, and if I don't auto renew and just book a new policy it will be cheaper?? Should I trust this company?
    Ok New driver, first insurance? They give you intro rate to get business.

    Shop around and get best policy that suits you.

    Also this is same for any insurance / contract that runs  for specified time

  • dunstonhdunstonh Forumite
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    I have gone on to one of these price comparison sites and have found the exact insurance I am on at the moment but £100 cheaper!

    All quite normal.  Providers with early year discounting frequently do this.  Its like broadband and other non-customer deals getting a joining discount.

    Is it right that insurers can do this as it makes me a little uneasy that they can charge an existing customer more, and if I don't auto renew and just book a new policy it will be cheaper?

    You see it in all walks of life.

    Should I trust this company?
    Year 1 or early year discounting has nothing to do with trust.

    not all insurers have early year discounting.  However, you rarely find those at the top of a comparison site. (although often you do find them not that ar off the top)

    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Mickey666Mickey666 Forumite
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    I had a similar situation with Direct Line for a few years.  I’d get my renewal quote From then then go online and get a new quote from Direct Line.  I then phoned them to say I wanted to renew with them but not for their renewal price but for my online quote from them.  This worked for a few years until they eventually refused the online price saying that it was only for new customers. So I asked them if they thought that was a decent way to treat loyal customers - which of course the script-jockey on the phone couldn’t answer so they passed me on to some other department, ‘retentions’ or something.  This time we had a bit of a conversation about fair customer treatment and they eventually agreed to honour their online quote, at which point I told them no thanks because of their appalling attitude towards loyal customers and I’ve never used them since.
    I know the insurance market is competitive but by offering new customers better deals than their existing ones they pretty much guarantee a huge turnover of customers every year.  It’s madness really, but that’s the way it is.
  • WadhammanWadhamman Forumite
    1 posts
    First Post
    MoneySaving Newbie
    My car insurance is coming up for renewal. The renewal premium is about 20% higher than last year.  No claims made and no changes to the cover, though I am one year older.  Can I expect to be able to negotiate the premium down, because lockdown has meant that I have used the car three times in three months, rather than the normal frequency of nearer 100 times?  Insurers must be receiving fewer claims across the country for this reason.  Should our renewal premiums reflect this benefit to insurers?
  • HasbeenHasbeen Forumite
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    Wadhamman said:
    My car insurance is coming up for renewal. The renewal premium is about 20% higher than last year.  No claims made and no changes to the cover, though I am one year older.  Can I expect to be able to negotiate the premium down, because lockdown has meant that I have used the car three times in three months, rather than the normal frequency of nearer 100 times?  Insurers must be receiving fewer claims across the country for this reason.  Should our renewal premiums reflect this benefit to insurers?
    Put your details into one of the comparison sites.

    See what others are offering.

    If you find cheaper quote that suits your purposes then you can call existing insurers and see if they can match.

    If not, take your custom elsewhere.
  • davidmcndavidmcn Forumite
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    Wadhamman said:
    My car insurance is coming up for renewal. The renewal premium is about 20% higher than last year.  No claims made and no changes to the cover, though I am one year older.  Can I expect to be able to negotiate the premium down, because lockdown has meant that I have used the car three times in three months, rather than the normal frequency of nearer 100 times?  Insurers must be receiving fewer claims across the country for this reason.  Should our renewal premiums reflect this benefit to insurers?
    You should be giving them a realistic estimated mileage for the coming year (which I appreciate involves some guesswork). You're not going to get a discount for future insurance because you used the car less than expected in the past year.
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