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    • powerful_Rogue
    • By powerful_Rogue 8th Jul 13, 11:50 AM
    • 3,767 Posts
    • 5,675 Thanks
    powerful_Rogue
    • #2
    • 8th Jul 13, 11:50 AM
    • #2
    • 8th Jul 13, 11:50 AM
    Its nothing new.

    I can bet that the cheapest cover last year will be the most expensive when it comes up to renewal. Until you phone them up to cancel the auto renewal and then all of a sudden they can match the cheapest price that you have found.

    They only get one chance with me. I always tell them, if you can match the price, then you should have quoted me the cheaper price when you sent out my renewal.

    It certainly is a crafty technique and often win win for the insurance company.

    - Auto renewal at high price in which the customer dosent do anything

    - Phone up to cancel auto renewal as found it much cheaper elsewhere and they offer to price match
    • InsideInsurance
    • By InsideInsurance 8th Jul 13, 12:08 PM
    • 22,215 Posts
    • 11,383 Thanks
    InsideInsurance
    • #3
    • 8th Jul 13, 12:08 PM
    • #3
    • 8th Jul 13, 12:08 PM
    They only get one chance with me. I always tell them, if you can match the price, then you should have quoted me the cheaper price when you sent out my renewal.
    Originally posted by powerful_Rogue
    In some cases though you aren't actually price matching but simply getting them to lower their price.

    For me the same insurer has been the cheapest for sometime, and even more so now with my new car, but still if you phone them up to "see what they can do" they always take at least 20% off.

    As to the fairness of the whole thing, we will see what the FCA comes out with especially given the early statements that some new customer discounting is to be considered acceptable. For me I have never kept just auto renewing to see what the compound effect would be with my current insurers and with my previous clients the loadings certainly existed but you were talking a max of 30% (from memory) rather than the newspaper headlines of £800 -v- new business price of £250
    • miller
    • By miller 8th Jul 13, 12:57 PM
    • 1,309 Posts
    • 483 Thanks
    miller
    • #4
    • 8th Jul 13, 12:57 PM
    • #4
    • 8th Jul 13, 12:57 PM
    Maybe they would also like to take a look at this little gem from the RAC:

    In order for a Member to benefit from any new
    Membership offers or promotions, a period of 120
    days must elapse between the Member leaving RAC
    and rejoining. An application to rejoin during this
    120-day period will be treated as a renewal and
    priced accordingly.
    by RAC T&C's section 16
    • rudekid48
    • By rudekid48 8th Jul 13, 1:19 PM
    • 2,134 Posts
    • 3,616 Thanks
    rudekid48
    • #5
    • 8th Jul 13, 1:19 PM
    • #5
    • 8th Jul 13, 1:19 PM
    This could possibly end up back-firing on a lot of people. All that will probably happen is an equalisation between new business and renewal rates, meaning that people who shop around every year will end up paying a lot more.

    The bubble had to burst eventually, the greed of the aggregators could not go unchecked forever - most are now looking to charge £75 for each policy sold, add that on to the significant (loss-leading) discounts that are given to get to the top of the comparison sites and it is simply not sustainable.

    Higher renewal premiums have subsidised discounts for those of us that shop around for a long time now, enjoy the cheap deals while you can - once this kicks in most of them will end....
    All matter is merely energy condensed to a slow vibration, we are all one consciousness experiencing itself subjectively, there is no such thing as death, life is only a dream, and we are the imagination of ourselves.
    • Reaper
    • By Reaper 8th Jul 13, 1:38 PM
    • 6,481 Posts
    • 4,835 Thanks
    Reaper
    • #6
    • 8th Jul 13, 1:38 PM
    • #6
    • 8th Jul 13, 1:38 PM
    The bubble had to burst eventually, the greed of the aggregators could not go unchecked forever - most are now looking to charge £75 for each policy sold, add that on to the significant (loss-leading) discounts that are given to get to the top of the comparison sites and it is simply not sustainable.
    Originally posted by rudekid48
    In theory the aggregators charge should only affect new customers, not those renewing. So in theory it ought to be a brake on big discounts only being offered to new customers.
    • Poppie68
    • By Poppie68 8th Jul 13, 2:59 PM
    • 4,481 Posts
    • 8,731 Thanks
    Poppie68
    • #7
    • 8th Jul 13, 2:59 PM
    • #7
    • 8th Jul 13, 2:59 PM
    Both my daughters have in the last week sold their cars. They were both up for renewal this week and their insurance doubled on renewal with their current insurer..both been driving for 3 years with no incidents or claims. We searched high and low for affordable insurance but the premiums were ridiculous for cars worth approx £500 each.

    The current insurers wanted £302 monthly payment were they were both paying £148 before, they were told they were on a new customer policy rate before, the cheapest new insurance option was £187 but a £459 upfront payment each...

    Anyway 2 bus passes were purchased at the weekend and a holiday is getting booked with the money they have just recieved for their cars from a local garage...
    Last edited by Poppie68; 11-07-2013 at 9:48 AM.
    • InsideInsurance
    • By InsideInsurance 8th Jul 13, 3:05 PM
    • 22,215 Posts
    • 11,383 Thanks
    InsideInsurance
    • #8
    • 8th Jul 13, 3:05 PM
    • #8
    • 8th Jul 13, 3:05 PM
    Both my daughters have in the last week sold their cars
    Originally posted by Poppie68
    On the basis you are talking about a single year then this is likely to be the fact that gender was outlawed as a rating factor for insurance at the end of last year and so many female drivers have seen a fair increase and many male drivers a smaller decrease as the two are harmonised.
    • mazco
    • By mazco 8th Jul 13, 4:27 PM
    • 10 Posts
    • 1 Thanks
    mazco
    • #9
    • 8th Jul 13, 4:27 PM
    • #9
    • 8th Jul 13, 4:27 PM
    Just had incredible example of this.
    My husband's cousin died yesterday at the age of nearly 90. She lived with her sister who is 75. They owned the house jointly and shared the bills but the elder sister paid for the house insurance.
    Today we spent some time with Brenda looking at practical details she needed to sort out immediately. We discovered that the insurance renewal was due on July 11th. She couldn't find the renewal quote but we checked bank statements and payments last year were £33.92 per month or over £400 for the year.
    We then went online and have found identical cover for £89.50 for the whole year.
    We are presuming that this year would have been more expensive than last year so I imagine it would have cost her around £450.
    If this isn't profiteering I don't know what is!
    • William Barnes
    • By William Barnes 9th Jul 13, 5:59 PM
    • 21 Posts
    • 17 Thanks
    William Barnes
    Will this action look into giving cashback to new customers (policies)?

    Will it also cover boiler insurance/maintenance polices ?

    There's other things that could be covered /looked into but probably not by this regulator. ( AA/RAC membership etc etc).
  • turbopete
    In some cases though you aren't actually price matching but simply getting them to lower their price.

    For me the same insurer has been the cheapest for sometime, and even more so now with my new car, but still if you phone them up to "see what they can do" they always take at least 20% off.

    As to the fairness of the whole thing, we will see what the FCA comes out with especially given the early statements that some new customer discounting is to be considered acceptable. For me I have never kept just auto renewing to see what the compound effect would be with my current insurers and with my previous clients the loadings certainly existed but you were talking a max of 30% (from memory) rather than the newspaper headlines of £800 -v- new business price of £250
    Originally posted by InsideInsurance
    The point here, I think is that the insurance industry has, in my opinion, been ripping us off for YEARS!!!!!

    in the past, i went from a ford Escort Td, to a ford Transit, then a Mercedes E300 Td and (living in the same house) my insurance only changed by £20 bertween the lowest and highest!

    I currently pay £350 a year for a 2001 C220 CDI but had quotes in excess of £3k!!!!!

    To add insult to injury, they have also cut back on my cover! I was only paying £400 when i was 17!!!! by age 20 my insurance had reduced to £260 and gave me FULLY comprehensive cover on ANY car! I changed my car, and was told i had no need to inform them as my insurance covered me for ANY car!!!

    Now, with a so-called comprehensive policy, it really ISNT comprehensive at all! some dont allow the driving of other vehicles, even on a 3rd party basis, windscreen cover, hire car, legal expenses etc are all EXTRAS etc.

    my view is that if, like myself, you use a number of different cars (family, friends etc) then a COMPREHENSIVE policy should, by its very name, cover EVERYTHING making it the DRIVER insured, rather than the car, like it was on the policy i had when i was in my early 20's.

    Until then, I will carry on to shop around until I get the best deal FOR ME, like, im sure, many others will. I hope the investigation goes deeper than this, and uncovers insurers as the fraudsters that I feel that they are. They have NEVER paid out MARKET value for any car Ive owned, only BOOK value losing me some £1800 in 4 months, despite my insuring it with the value of the purchase price, AND having the receipt to prove this!
    • Wel
    • By Wel 10th Jul 13, 6:50 PM
    • 3 Posts
    • 0 Thanks
    Wel
    [QUOTE=turbopete;62345631]Now, with a so-called comprehensive policy, it really ISNT comprehensive at all! some dont allow the driving of other vehicles, even on a 3rd party basis, windscreen cover, hire car, legal expenses etc are all EXTRAS etc.

    I can only agree on this, comprehensive is a joke especially when you do not drive a new car. My insurers just gave me a renewal quote of 50.- less than last years at the same time decided to put up compulsory excess for Theft 100.- to 250. In my case that would mean if I get my car stolen and according to market value I might get a 100 bugs from them if I am lucky (while the car is still worth more due to it's condition). What do I insure it for then? All in all I pay 450 compulsory excess and an additional 200 when repaired by my own repairer not mentioned voluntary excess. Wooahhh, this all doesn't make sense to me and I am not even sure if this is legal?
    This makes me really angry but none seems to be any better.
  • sprinterman
    [QUOTE=Wel;62354705]
    Now, with a so-called comprehensive policy, it really ISNT comprehensive at all! some dont allow the driving of other vehicles, even on a 3rd party basis, windscreen cover, hire car, legal expenses etc are all EXTRAS etc.

    I can only agree on this, comprehensive is a joke especially when you do not drive a new car. My insurers just gave me a renewal quote of 50.- less than last years at the same time decided to put up compulsory excess for Theft 100.- to 250. In my case that would mean if I get my car stolen and according to market value I might get a 100 bugs from them if I am lucky (while the car is still worth more due to it's condition). What do I insure it for then? All in all I pay 450 compulsory excess and an additional 200 when repaired by my own repairer not mentioned voluntary excess. Wooahhh, this all doesn't make sense to me and I am not even sure if this is legal?
    This makes me really angry but none seems to be any better.
    Originally posted by turbopete
    hi there i thought i would let you know of my experiance with my insurance company that i have been with for over 20 yrs i needed to try and get my outgoings down so i thought i would phone up my car insurance company to see if they could help reduce my monthly premiums but i hade been on thier website earlier as a new customer and got a quote of £33.00 per month my insurance was not due for renual till feb next year anyway the info was to be the same as at my last renual except that i did not want my 3 additional drivers on the policy anymore the perrson said it would reduce my premiums by £2.50p per month so i would still be paying more or less £55.00p per month premium so i sad is that the best you can do he said yes but as it gets to 28 days before my renual date next year then i might save me a bit more but untill then this is all he could do for me so i said to him why was it that 20mins before i spoke to you that i could go on your web site putting in the same details as you have just been given and got a quote for £33.00p per month he did not know what to say other than a new policy would attract a deposit of £50 mines has no deposit also that they would would have to do a credit search (frighting) so i said could he give me a quote as a new policy holder he said yes and guess what he came up with a figure of £31.00p per month so i said to him if i cancelled my old policy and took out the new one would there be any cancellation charges or peniltys he said now so i took out the new one and cancelled the old oneso in other words instead of paying £684.40per year i am only paying £315.84 per year a total saving of £368.40p per yr and i have auto renued each yr and took it as being the best price so it just goes to show dont take anything for granted ask anyway
    • dunstonh
    • By dunstonh 11th Jul 13, 10:09 AM
    • 98,252 Posts
    • 66,466 Thanks
    dunstonh
    I currently pay £350 a year for a 2001 C220 CDI but had quotes in excess of £3k!!!!!
    It is very common in financial services not to actually refuse business you dont want but to price it in a way that it acts as a passive blocker. Hence why you see such high figures. They dont want your business but are not refusing it.

    Now, with a so-called comprehensive policy, it really ISNT comprehensive at all! some dont allow the driving of other vehicles, even on a 3rd party basis, windscreen cover, hire car, legal expenses etc are all EXTRAS etc.
    The increase risks we have today along with introduction of comparison sites where they chipping off of options and features to lower the price to push the policy up the table are responsible for that. However, you can still purchase insurance that allows that. You just are unlikely to find it on comparison sites.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • Just_Some_Guy
    • By Just_Some_Guy 11th Jul 13, 1:08 PM
    • 231 Posts
    • 97 Thanks
    Just_Some_Guy
    Renewal rates being much higher than new customer rates is a laziness tax. It is dead simple to avoid getting stung at renewal you just need to spend fifteen minutes on one of the price comparison websites. I am naturally both stingy and lazy so I have mixed feelings about a ban. I like being able to get cheaper quotes by shopping around and I dislike having to do so in the first place.

    Insurers chipping away at cover to try and sneak their way up the list is more insidious. People think they are buying "fully comp" insurance which is missing lots of features of genuinely fully comprehensive cover. There are so many comprehensive policies these days, each with slightly difference features, that using price comparison websites for them is now an easy way to compare apples with oranges!
    • hiswitzend
    • By hiswitzend 20th Jul 13, 5:25 AM
    • 40 Posts
    • 58 Thanks
    hiswitzend
    Interestingly my insurance renewal came in at a nice round £500 from direct line this year, same insurance cover from Aviva £253. I phoned DL up to be told that OK we can do 425 if you pay now, erm yeah right i don't think so. There are huge discrepancies within the insurance market. I get a feeling the statement about autorenewal is correct for years i have refused it yet the last 3 year direct line seen to automatically try it on when you have clearly told them no.
    Mortgage when started: £78,314 :- 10 year fixed till Feb 2019
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  • fed up being ripped off
    Another RAC story. In the beginning of July I had received a letter from my current insurer (RAC) stating that they would be charging me an extra £38.26 for an accident that was my fault, I phoned RAC immediately to find out what was going on and found out it was that they had a non fault accident down as being my fault. I took this policy out in May, the accident in question was in Nov last year After several phone calls to and fro from my insurer, previous insurer (broker) and then the actual insurer at the time of accident AXA and another call to the 3rd party's insurer (who's client was at fault) I had finally been told it was because the claim had not been settled, which AXA then chased for me very quickly and had it dealt with then sent me along with my current insurer a letter stating that liability had been admitted by 3rd party and another letter stating that full recovery of there outlay had now been received. I then phoned RAC about a week later to see if they had received this letter and that the payment had been stopped, I was told that they had not received the letter, so I sent them a copy of my letter. Today I received a letter stating that they had received the letter and was still going to charge me the amount £38.26. I immediately phoned again to find out what was going on only to be told that I have a refund put on my insurance of £17.74 making the charge due to come out £20.52, I asked why there was still a charge due to come out as I paid my insurance policy in full at the start back in May, they replied it was because I didn't disclose the non fault accident, when actually I did and I have proof on my computer of the details I had entered to get the quote off of them in the first instance, they are still disputing this fact and the charge remains to be taken from me. Watch out for miss-leading quotes from comparison sites from RAC. In any case it is unfair to be charged on your premium for a non fault accident.
  • DianeRan
    Just had a letter from my current insurance company with a renewal cost for home contents insurance that is double compared to what I paid last year and to what I've been quoted elsewhere for the same cover!

    What really annoys me though is that they apparently helpfully have already done a comparison from other insurers and have a little chart on the letter showing you the 5 apparently cheapest quotes you'd get at other insurers (which they have obviously beaten with their over inflated quote). Yet these in now way match up to any quotes I've received, in fact they are all ridiculously over inflated.
    They don't even put the names of the Insurers that they've allegedly got these quotes from, just Insurer A, B,C etc. Is this not misselling? I think its appalling that companies can put this on their communications and be allowed to get away with it.
    • dunstonh
    • By dunstonh 2nd Jul 14, 3:05 PM
    • 98,252 Posts
    • 66,466 Thanks
    dunstonh
    They don't even put the names of the Insurers that they've allegedly got these quotes from, just Insurer A, B,C etc. Is this not misselling?
    It cant be miss-selling if you dont go through the sales processs

    I think its appalling that companies can put this on their communications and be allowed to get away with it.
    What are they actually doing that is wrong? They have their price and they have given you the price of several others they can arrange. You either take that or leave it. You are obviously choosing to leave it but what if those prices had been better? Would you feel the same way?
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • nobbysn*ts
    • By nobbysn*ts 2nd Jul 14, 4:14 PM
    • 1,152 Posts
    • 295 Thanks
    nobbysn*ts
    What you do is complain to the advertising authority, and the FOS, and ask them to justify the 5 cheapest quotes, and see what response the give then.
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