CAR INSURANCE PREMIUM RISE

Bobby4puddings

I'm currently insured with L&V and my car renewal has just come through.
Its going up from £231.41 to £274.43.
I've checked on Go Compare and Confused and I can get exactly the same policy with L&V for £240.60 with the same extras and excess.
I thought insurance companies were banned from charging you more than they would a new customer?

jimbo6977

Bobby4puddings said:

I'm currently insured with L&V and my car renewal has just come through.
Its going up from £231.41 to £274.43.
I've checked on Go Compare and Confused and I can get exactly the same policy with L&V for £240.60 with the same extras and excess.
I thought insurance companies were banned from charging you more than they would a new customer?

there will no doubt be some tiny point of difference, which might or might not be significant to you as a policy holder. need to check all of the docs for both of the offered policies. 

Herzlos

They are, but the renewal is based on how you joined, so if you signed up over the phone you'll get a phone price not an internet price. The same I think applies for comparison site / direct query too.

There may also be some detail missing, but if you phone them with the quote details they should be able to explain and match.

Bigphil1474

I had the same last year with LV - I even rung them up to query why the renewal quote was more than I could find on the comparison site. They didn't know and offered to knock £10 off but was still £50 more than the comparison site. I went to Sheilas Wheels and saved £70.
As Jimbo says, it's probably some minor difference, but I have all my details saved in the comparison sites so the details were the same as when I went to LV in the first place.

Flight3287462

Phone them up and have a chat, I had similar sort of quotes this year from Direct Line and wee chat brought it in a smidge under £200.

DullGreyGuy

Bobby4puddings said:

I'm currently insured with L&V and my car renewal has just come through.
Its going up from £231.41 to £274.43.
I've checked on Go Compare and Confused and I can get exactly the same policy with L&V for £240.60 with the same extras and excess.
I thought insurance companies were banned from charging you more than they would a new customer?

First of all... who are "L&V"? Do you mean L&G or LV or someone else?

They are banned for charging you more as a renewing customer than a new customer for the same product via the same channel. Product in this context is much more granular than "motor" - for example Hiscox used to sell two Home products, once called 101 and the other 303 which were aimed at very different customer segments with notably different terms, allowable limits etc.


How did you buy this policy orriginally? If you telephone them to negotiate it could well be noted as a telephone sale in which case their renewal quote must be no more than what a new telephone customer would be quoted but insurers are allowed to differentiate by channel so Aggregators/comparison sites dont have to be priced the same as telephone customers.

I ask who you are buying from because if its a broker you also have the consideration of who the insurer is as your renewal quote may be with the prior year insurer/not rebrokered and the new business quote with a different insurer... unfortunately most people call broker/intermediaries insurers or insurance companies and that really muddies the water.

Bobby4puddings

Well I've settled it with L&V. I phoned and the girl could not explain
I wanted to add a courtesy car to my policy after recent problems with my daughter who did not have it after an accident.
I agreed to a price of £261 which now includes courtesy car. So the actual price now, taking into consideration the added extra is only £10. An amount I am happy with.
Thanks for all your replies!

The_Unready

I'm glad you've come to an agreement - I don't give insurance firms a second chance. If I can find an equivalent policy cheaper than their renewal quote I'll take that policy out without giving the original insurers an opportunity to requote.

It means very little in the general scheme of things, but it makes me feel better 😄!

DullGreyGuy

The_Unready said:

I'm glad you've come to an agreement - I don't give insurance firms a second chance. If I can find an equivalent policy cheaper than their renewal quote I'll take that policy out without giving the original insurers an opportunity to requote.

It means very little in the general scheme of things, but it makes me feel better 😄!

Somewhat depends on how you are defining equivalent, especially as you say cheaper rather than better value.

Not all companies are equal and there are plenty of stories on here of those that buy on price alone and find that was a very expensive mistake even if it was still comp with courtesy car or whatever from a product perspective.

JGreenwood

phone up to negotiate, I got a really healthy discount on my renewal quote when I rang up