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Why do car insurance companies operate dual pricing?

Why is it that car insurance companies operate dual pricing? Is this legal? I received my car insurance renewal papers today showing a quotation of £222.50. I looked on a comparison website and a like for like quotation was £194.06.

I contacted my insurer - who I've been with for years - and after ages on the telephone they matched the online figure. I find it appalling they charge loyal customers considerably more than new customers!

Asked on 3 March 2016 by Classical

Answered by Honest John
There used to be Insurance underwriters, Insurance companies and Insurance brokers. Over the past 10 years the difference between Insurance companies and Insurance brokers has become increasingly blurred to the extent that an 'Insurance company' acting as a broker may well be working on a 100% commission rate rather than the standard 10% broker commission. How much of that 100% they give to the customer varies.
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