I have just received my insurance renewal quote from a leading insurance company and I was fully expecting to have an increase due to the fact I've been a bad lad and got two speeding fines earlier this year. Two months ago I spoke to them about it as I was changing cars from an 11yr old 318is Coupe to 06 Focus 1.8 TCDI Zetec, at the time they said the speeding offences wouldn't be taken into account until renewal and my premium went up by £16.00 PA at the time. Well the renewal quote went up by £400.00 which in effect double my premium from £425 to £825.00. A quick look on moneysupermarket found loads of insurance companies which offered cover at around the lower £400's mark which included protected NCD and changing to business insurance. I called my existing company back and spoke to a call centre in Deli and asked what I had to do cancel my policy. I enquired if they were interested in why I was cancelling and whether they would like to try and match my new quote. The supervisor pointed out the obvious that the premium had increased due to the speeding offences and what were the other companies offering. When I told them the new quotes they said "Thats is because the other companies weren't as choosey as them and didn't have the same exacting standards".
Now I didn't go through any specialist brokers or was economical with truth, just a five minute search on tinernet and the companies that came back were the usual suspects. That amused me and he said that I wouldn't get the same quality of service from other companies. I'm old and ugly enough to take my chances in the market place with substandard service :-) but I wonder how many people accept this kind of spiel from there existing companies because they don't believe there is a choice or think because they have committed an offence this is part of the shame they should endure.
Just wondering, not really expecting any comments
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Insured through Churchill renewal comes £296 goes to TSB who use Churchill same cover exactly premium £216,insurance companies are all chancers they will rob you blind if you let them.
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I don't think any firm that runs an overseas call centre has "Exacting Standards". The effect of speeding convictions seem to vary; my insurer says not a problem for 3 points, a colleague at work paid an extra £30 a year for 5 years, a relative has just got insurance after a 6 month ban for 12 points, with the premium up by £50. As ever - shop around! I got £65 off a £220 premium this month, from my existing insurer, by bargaining with them using a quote they had supplied for my risk thru travelsupermarket.com.
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It is mainly because most insurers will give very competitive quotes for new business, so will discount heavily. Existing customers dont get these discounts and they rely on most people just paying up.
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I have to say that, for the last ten years or so, I have changed insurers every year - except for the two occasions when I bargained with my existing insurers on the basis of lower quotes elsewhere, and they were so keen to keep my business they matched the quotes. So I am resigned to shopping around each time - there can be a big difference between the lowest and the next-to-lowest quotes, never mind between the lowest and highest! At least the internet makes it easier.
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I was quoted £300 fully comp with Businees use. From looking on confused.com I knew £230 was the norm.
Phoned up the broker I use and told them to sharpen their pencil or I'm going elsewhere. Surprise surprise, came back with £203. Only difference is I can't drive other cars on this policy but I never do that anyway. When you've got a Renault, why would you want to anyway??? ;-)
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I fully expect to have an increase due to the speeding offences but that leap was a little too much to stomach. I would have preferred to stay with them as its less hassle, I was born at night but not last night!.
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Most companies business models works by rewarding loyal customers and trying to retain them.
The typical insurance business model works by giving the best prices to new customers and screwing existing ones by putting up prices on renewal. So it rewards new customers and penalises existing ones.
i.e. it relies on customer inertia.
Of course this worked fine 10 years ago before the internet and cal centres.
Nowadays with cheap switchinh and internet search engines, all it means is that only the lazy or those with good companies who have ditched the business model stay loyal.
The rest switch.
Of course as a result adding new customers: advertising and admin and paperwork and cheap year 1 insurance means that these customers are likely marginally profitable..
Stoopid? Yes.
But no more stoopid than most insurance company chief execs who continue with it...
madf
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