Cheaper insurance new customer.

HillStreetBlues

So much for bringing in a law that stops loyal customers paying more!

My renewal £475.97
My new customer quote via moneysupermarket £219.94   and hopefully £40 cashback. so £179.94

All this the same company and same cover.

CliveOfIndia

Are you sure it's the same level of cover?  Not being funny, but very often I've found that the price comparison sites will give you a price, but when you click through to the actual insurer you'll find that there are loads of default settings that have been assumed.  A massive excess, for instance, and if you change that to match what your current excess is, it can make a big difference to the price.  Likewise with things like guaranteed courtesy car, legal cover, key cover, that type of thing.

You may find that if you click through from the comparison site, you'll see that the cover is not as comprehensive as what you've currently got.

DullGreyGuy

HillStreetBlues said:

So much for bringing in a law that stops loyal customers paying more!

My renewal £475.97
My new customer quote via moneysupermarket £219.94   and hopefully £40 cashback. so £179.94

All this the same company and same cover.

How did you buy it last year? Did you phone up to negotiate before buying?

The regulations require existing customers to be offered the same or lower price as a new customer for the same product via the same channel. So if you bought over the phone last year then this years quote cannot be worse than their telephone rate. Website and Aggregators have been defined as different channels under the regs. It's perfectly acceptable to sell things cheaper on aggregators than the telephone etc.

Similarly "same product" doesn't just mean "car insurance" but something much more granular. Having not been in the Home/Motor space since the new regs haven't studied exactly the level of difference required to be considered a new product but typically having a "silver" car insurance where you can add Breakdown and Legal Expenses as an optional extra and then a "gold" where these are included as standard plus maybe bump the personal effects cover from £100 to £200 most likely would be considered two products.

HillStreetBlues

Thanks both for your replies.

Just want to say that I'm not saying the insurers have done anything wrong. I just read a law was passed and maybe it's not doing what it's intended to do.

I always go though a cashback site,  last year it was Quidco compare this year it's moneysupermarket via topcashback.

The cover look the same to me as I always deselect any extra cost, I just go for the very basic.
The only upgrade I did for both is for breakdown cover, so I have homestart and no call out fee. This cost £39 extra both years.

DullGreyGuy

HillStreetBlues said:

I always go though a cashback site,  last year it was Quidco compare this year it's moneysupermarket via topcashback.

The cover look the same to me as I always deselect any extra cost, I just go for the very basic.
The only upgrade I did for both is for breakdown cover, so I have homestart and no call out fee. This cost £39 extra both years.

So a cash back site probably linked to their own website whereas this year you have gone via an aggregator. Two channels so two prices are acceptable

HillStreetBlues

DullGreyGuy said:

So a cash back site probably linked to their own website whereas this year you have gone via an aggregator. Two channels so two prices are acceptable

Quidco compare is a  comparison site  "is powered by moneysupermarket"  so just really a rebrand.

The insurer I''m using doesn't have a direct cashback link to their own site,  the only way to get any cashback is via comparison site

HillStreetBlues

There is one change I made, I added an extra 1000 miles  to the quote this year.

If I had used the old mileage the renewal quote is based on  the new quote  would have been £15 cheaper.
So like for like it would actually be.
My renewal £475.97
My new customer quote via moneysupermarket £204.94