Car insurance - ripping off existing customers

Henry Ford III

Don't be surprised by a higher renewal premium. That often happens.

Just shop around and be prepared to move providers annually.

Rows Grower

Uncle Pierre wrote: »

I'm going to agree with one thing being said here, but disagree with another.

First – agree that existing customers might not always get the best deal with the renewal quote sent to them by post. I just got mine a few days ago. Quote was €348 (roughly the same as last year). I did the usual shop around by getting quotes from other companies online, and the cheapest with anybody else was €412. So obviously I’m going to stick with my current insurer.

But then I entered details on their site too and got a quote for €317, thanks to their online discount. Rang them up and they confirmed I could do it that way for that price. So point being that an existing customer might not always get the best price if they don’t get a “new” quote from that insurer anyway.

BUT – as regards loyalty – the price breakdown of my quote shows a customer loyalty discount of €81 since I’ve been with the same crowd for a few years now (and yes, I always shop around, and yes, they’re always the cheapest). Large part of why they’re the cheapest is this loyalty discount. So I have to disagree with the people here who claim that insurance companies will show no loyalty to you.

Incidentally, I also have my home insurance with the same company. Again, it’s the cheapest I could find for home insurance. And because I’ve got both car and home with them, I qualify for free annual multi-trip travel insurance for my family, that would cost me about €90 if I had to pay for it myself.

I must be just one of the lucky ones…

So you agree that existing customers don't get the best deal for renewals in the post but you disagree that insurance companies show no loyalty to them.

Clear as mud, thanks for clearing that up.

How about insurance companies use the technology they have available to them and before renewal is due do the homework and just issue one written quote that they know is the most competitive they can provide?

Then they won't have to employ the tele sales people who are the bane of most customers lives, will save customers wasting valuable time and suffering needless stress while also saving a lot off their wage bill and thus be able to provide a better quote again and still be a profitable enterprise.

Rows Grower

Triangle wrote: »

Maybe I missed it, but there's no regulation on renewal premiums and any breaches of the regulation leads to sanctions from the central bank or financial ombudsman.

But I was replying to someone, whom you seemed to have missed, saying there is no regulation.

Yeah, you missed that alright.

white_westie

I know this is about car insurance, but house insurance was up for renewal this month, renewal notice was approx 50€ more than last year. Same happened last year, but after a phone call got it reduced by 50€.
So before doing the rounds this year of getting quotes, I decided to do an online quote with my current provider and it was over a 100€ cheaper than renewal quote! Normally this is not the case.
Rang them up and asked them to check the quote, and after going through the checklist fully the quote was correct, so I took it.
The difference was not due to discounts etc, because the gross quote for the house and contents was higher than that of the renewal - this should not be the case as its the same address, same age etc hence the same risk!
I'm sure the same applies to cars - the base starting quote is much higher.

While the insurance industry may have mumbled about changes to Mr Doherty's queries they are still screwing existing customers.

Uncle Pierre

Rows Grower wrote: »

So you agree that existing customers don't get the best deal for renewals in the post but you disagree that insurance companies show no loyalty to them.

Clear as mud, thanks for clearing that up.

Wow, you really want to pick a fight, don’t you?

Let me try to “un-muddy” things for you:
I get a CUSTOMER LOYALTY BONUS from the insurer I’ve been with for the past few years. This makes their price LOWER than any other quote I can find.

It just so happens that I can then get a further discount if I renew online instead of by post. I see this as an added bonus. And now having looked again at the hard copy renewal documents I got in the post, I see a bit that tells me I can save more by renewing online and invites me to log in to my account there, so it’s not as though they were trying to hide it from me altogether.

Overall I’ll be paying €95 less to them than I would be to anyone else (€317 instead of €412). I’ll also get another €90 annual travel insurance policy for free for next year. Overall I’ll be €185 better off. And that’s all through them giving certain discounts and bonuses to existing customers.

BronsonTB

Uncle Pierre wrote: »

Wow, you really want to pick a fight, don’t you?

Let me try to “un-muddy” things for you:
I get a CUSTOMER LOYALTY BONUS from the insurer I’ve been with for the past few years. This makes their price LOWER than any other quote I can find.

It just so happens that I can then get a further discount if I renew online instead of by post. I see this as an added bonus. And now having looked again at the hard copy renewal documents I got in the post, I see a bit that tells me I can save more by renewing online and invites me to log in to my account there, so it’s not as though they were trying to hide it from me altogether.

Overall I’ll be paying €95 less to them than I would be to anyone else (€317 instead of €412). I’ll also get another €90 annual travel insurance policy for free for next year. Overall I’ll be €185 better off. And that’s all through them giving certain discounts and bonuses to existing customers.

In your case you do get loyalty, enjoy the savings as your circumstances are rare and not the norm from what most here experience from the Insurance companies.

Uncle Pierre

BronsonTB wrote: »

In your case you do get loyalty, enjoy the savings as your circumstances are rare and not the norm from what most here experience from the Insurance companies.

Thank you for a more reasonable contribution than others are making.

Yes, as I acknowledged originally, I must be one of the lucky ones. But just wanted to point out that it's wrong to throw out blanket statements like "they'll show no loyalty to you", as others have been doing.

DesperateDan

Uncle Pierre wrote: »

Wow, you really want to pick a fight, don’t you?

Let me try to “un-muddy” things for you:
I get a CUSTOMER LOYALTY BONUS from the insurer I’ve been with for the past few years. This makes their price LOWER than any other quote I can find.

Who is your insurer, is there a reason you don't mention them? Seems like an unusual operation.

Uncle Pierre

DesperateDan wrote: »

Who is your insurer, is there a reason you don't mention them? Seems like an unusual operation.

Wasn't going to name them for fear I'd be accused of advertising or being employed by them or otherwise connected with them myself. But if it's okay to say, it's Aviva.

Rows Grower

Uncle Pierre wrote: »

Wow, you really want to pick a fight, don’t you?

Let me try to “un-muddy” things for you:
I get a CUSTOMER LOYALTY BONUS from the insurer I’ve been with for the past few years. This makes their price LOWER than any other quote I can find.

It just so happens that I can then get a further discount if I renew online instead of by post. I see this as an added bonus. And now having looked again at the hard copy renewal documents I got in the post, I see a bit that tells me I can save more by renewing online and invites me to log in to my account there, so it’s not as though they were trying to hide it from me altogether.

Overall I’ll be paying €95 less to them than I would be to anyone else (€317 instead of €412). I’ll also get another €90 annual travel insurance policy for free for next year. Overall I’ll be €185 better off. And that’s all through them giving certain discounts and bonuses to existing customers.

No, is the simple answer to that question Pierre.

corks finest

Uncle Pierre wrote: »

Thank you for a more reasonable contribution than others are making.

Yes, as I acknowledged originally, I must be one of the lucky ones. But just wanted to point out that it's wrong to throw out blanket statements like "they'll show no loyalty to you", as others have been doing.

What company? As I've not heard of customer loyalty discount reference motor insurance, I'm with liberty and will definitely be asking about it in May when my car insurance is up, thanks

Uncle Pierre

Rows Grower wrote: »

No, is the simple answer to that question Pierre.

Okay. We friends then?

corks finest

Uncle Pierre wrote: »

Wasn't going to name them for fear I'd be accused of advertising or being employed by them or otherwise connected with them myself. But if it's okay to say, it's Aviva.

Thank you