Car insurance rip off

[L00b]

I changed my car insurance this year as normal after they ramped up the price by about 30%, so I told theme I wouldn't be renewing.

 

Went online and got my insurance with the company I had just left lol as they were the cheapest.

I just don't get the logic of insurers who use that business model. Which is most of them these days, of course.

 

Surely it's more effective, from an admin/costs/overhead point of view, to quote a lower renewal figure (all things considered: same car of decreased value, NCB + 1 year, no new driving offences ,etc.>) to an existing customer, than force them out with a daft renewal (e.g. double) only to quote against the competition (potentially still lower than the notional lower renewal figure) and pay the online comparison website's commission?

 

I get that many customers will just renew at the higher renewal through apathy or mental block or whatnot...but still, I'm sure it's more cost-effective (and so, possibly more profitable) to try and keep all your existing customers and only try to get new ones through online comparison engines, than 'clear out' all your customers annually at the risk of getting less of them back at still lower premiums.

[bigsexydoug]

I just don't get the logic of insurers who use that business model. Which is most of them these days, of course.

 

Surely it's more effective, from an admin/costs/overhead point of view, to quote a lower renewal figure (all things considered: same car of decreased value, NCB + 1 year, no new driving offences ,etc.>) to an existing customer, than force them out with a daft renewal (e.g. double) only to quote against the competition (potentially still lower than the notional lower renewal figure) and pay the online comparison website's commission?

 

I get that many customers will just renew at the higher renewal through apathy or mental block or whatnot...but still, I'm sure it's more cost-effective (and so, possibly more profitable) to try and keep all your existing customers and only try to get new ones through online comparison engines, than 'clear out' all your customers annually at the risk of getting less of them back at still lower premiums.

 

If they weren't getting more money they would stop it ! End of story, kind of glad in a way, don't want them getting used to getting my money without trying , let them earn the money ! If they can't or won't , then I leave !

 

Still I would never want to be that kind of business person who comes up with crap like that, I know I couldn't do it if had customers .

[Timeh]

Premiums are on the rise again, apparently there's been lots more personal injury claims recently.

 

Still I agree, and good on you. Doubling a premium like that is just pure greed.

 

Cheers mate. Just to be sure i requoted yesterday and the quote was even higher than the 100% increase of before. I was quite annoyed so spoke to a rep who told me how complex and accurate their system was for getting the best and cheapest prices. When i told them that i got a quote for £465 from Esure and they are quoting me £2350 she said 'why not wait a week or two. the price may come down a bit' . I told her its gone up since i last got a price a week or so ago she wasnt bothered and they still wouldnt haggle. lol.

Im not sure what happened but Tesco has gone from one of the cheapest to by far the most expensive.

 

---------- Post added 27-08-2015 at 09:21 ----------

 

He chose "Churchill" ... Oh Yes!

 

:hihi:

 

---------- Post added 27-08-2015 at 09:22 ----------

 

Hopefully not admiral either.

 

It was tescos mate

 

---------- Post added 27-08-2015 at 09:29 ----------

 

I got a multi car quote from Admiral, and my insurance for 2 cars has dropped to only £400 a year.

It wasn't that long ago that I was paying £1000 a year just for my car. So I'm pretty happy.

The renewal quote from Aviva was £600 though, so I'll be switching.

 

Admiral gave me a good price, about the 3rd cheepest and the policy had key,widnscreen and breakdown cover in the price. Not a bad price but im a tight northerner so im going for the cheapest.

[Cyclone]

I just don't get the logic of insurers who use that business model. Which is most of them these days, of course.

 

Surely it's more effective, from an admin/costs/overhead point of view, to quote a lower renewal figure (all things considered: same car of decreased value, NCB + 1 year, no new driving offences ,etc.>) to an existing customer, than force them out with a daft renewal (e.g. double) only to quote against the competition (potentially still lower than the notional lower renewal figure) and pay the online comparison website's commission?

 

I get that many customers will just renew at the higher renewal through apathy or mental block or whatnot...but still, I'm sure it's more cost-effective (and so, possibly more profitable) to try and keep all your existing customers and only try to get new ones through online comparison engines, than 'clear out' all your customers annually at the risk of getting less of them back at still lower premiums.

 

It depends on how many will just pay it I suppose. If it's 75% then they're probably onto a winner.

[Timeh]

It depends on how many will just pay it I suppose. If it's 75% then they're probably onto a winner.

 

A reli of mine told me she has been with the same insurer for 10 years and always lets them auto renew.

No matter what i say she wont listen and insists she likes her insurer so i did her a quote on Go Compare. She almost fell through the floor when she saw how she was getting fleeced.

[L00b]

It depends on how many will just pay it I suppose. If it's 75% then they're probably onto a winner.

Of course.

 

Still, considering the compulsory character of car insurance, there should be some form of statutory protection for vulnerable customers (in the sense of e.g. Timeh's relation above), e.g. a strict prohibition on increasing a renewal premium when no circumstances have changed year-on-year (same car, same driver, same use/location where kept, no new conviction, NCB + 1year).

 

That's just one of many other commonsensical measure I have in mind, that I would force on insurers to put in some checks and balances (that remain fair to conducting their business).

 

BTW, whatever happened to the courtesy car price-rigging inquiry?

Edited August 27, 2015 by L00b

[Cyclone]

Of course.

 

Still, considering the compulsory character of car insurance, there should be some form of statutory protection for vulnerable customers (in the sense of e.g. Timeh's relation above), e.g. a strict prohibition on increasing a renewal premium when no circumstances have changed year-on-year (same car, same driver, same use/location where kept, no new conviction, NCB + 1year).

 

That's just one of many other commonsensical measure I have in mind, that I would force on insurers to put in some checks and balances (that remain fair to conducting their business).

 

BTW, whatever happened to the courtesy car price-rigging inquiry?

 

Seems like interference in the free market... But on the other hand I can see your point.

How are insurers supposed to respond to underlying market changes though, or simply to increase profit if they realise they've been selling policies too cheap for the actualised number of claims coming out?