Are insurance companies still not obeying the rules?
Discussion
From what I understand car insurance companies are supposed to now give existing customers renewing their car insurance the same deal that they would to a new customer.
My daughter’s renewal quote came through at £580. As usual I did the normal see what is out there. I was surprised to see the same company quote £440 on a comparison site.
I therefore phoned the company and asked them to check that the quote was like for like. They confirmed that it was but said the best they could do with the existing policy was £560.
I asked why there was still such a difference and they should be giving us the best deal. No they couldn’t honour the £440 and said the difference was because they were quoted at a different time, which sounds like a cop out to me.
I could have the £440 if I cancelled the existing policy and started a new one. This would mean paying another deposit as my daughter pays monthly.
The above does not seem right to me. Anyway cancelled the policy and went somewhere else for £410.
Are they allowed to do the above, is it worth referring to the financial ombudsman to make them aware that insurance companies are still not doing as they should?
It appears to me that if you are a loyal customer who does not question prices you still get shafted. Are other peoples experience the same?
My daughter’s renewal quote came through at £580. As usual I did the normal see what is out there. I was surprised to see the same company quote £440 on a comparison site.
I therefore phoned the company and asked them to check that the quote was like for like. They confirmed that it was but said the best they could do with the existing policy was £560.
I asked why there was still such a difference and they should be giving us the best deal. No they couldn’t honour the £440 and said the difference was because they were quoted at a different time, which sounds like a cop out to me.
I could have the £440 if I cancelled the existing policy and started a new one. This would mean paying another deposit as my daughter pays monthly.
The above does not seem right to me. Anyway cancelled the policy and went somewhere else for £410.
Are they allowed to do the above, is it worth referring to the financial ombudsman to make them aware that insurance companies are still not doing as they should?
It appears to me that if you are a loyal customer who does not question prices you still get shafted. Are other peoples experience the same?
Bright Halo said:
Are other peoples experience the same?
Yes - but it's not a new thing, indeed I've always wondered why, if you go to download your docs, there's usually a load of choices based on when you first took the policy out.Had it with LV years ago - I let it go for a while and then the premium just got too much. They said "oh, you've got our old 'Classic' policy". I asked what the difference was and bascially all those things that are options now were included as standard. They also didn't care about licence points, only bans. New policy was half the price.
Sheepshanks said:
Yes - but it's not a new thing, indeed I've always wondered why, if you go to download your docs, there's usually a load of choices based on when you first took the policy out.
Had it with LV years ago - I let it go for a while and then the premium just got too much. They said "oh, you've got our old 'Classic' policy". I asked what the difference was and bascially all those things that are options now were included as standard. They also didn't care about licence points, only bans. New policy was half the price.
I think there was a new law passed within the last couple of weeks that means insurance companies *should* be giving you the same quote you'd get as being a new customer, or better.Had it with LV years ago - I let it go for a while and then the premium just got too much. They said "oh, you've got our old 'Classic' policy". I asked what the difference was and bascially all those things that are options now were included as standard. They also didn't care about licence points, only bans. New policy was half the price.
986S_1 said:
I think there was a new law passed within the last couple of weeks that means insurance companies *should* be giving you the same quote you'd get as being a new customer, or better.
That's the point of the thread. Insurance companies seem to be getting around the new rules by offering renewals on old policies, but offering new customers new policies at lower prices. And unlike the situation I had some years ago when there were clear difference between the policies, now there's nothing to tell between them.Sheepshanks said:
Doofus said:
My LV multicar renewal was 30% down on last year.
Yes, but did you check how much it would be if you did a new quote? I did wife's (single car) and it dropped over £100 (renewal and new policy both with LV).
t.'we can try another policy called X instead of Y, that may be cheaper'
'there is another underwriter we can work with, ah yes the price is lower''
'if you find a better price online with us we will match it on the phone'
Just a small selection of the bs given trying to sort 2 lots of insurance in the last month.
'there is another underwriter we can work with, ah yes the price is lower''
'if you find a better price online with us we will match it on the phone'
Just a small selection of the bs given trying to sort 2 lots of insurance in the last month.
OP, in your situation, if they have confirmed it is like for like and that they are just different prices then by all means follow the complaints process (insurer complaint and then if unresolved Ombudsman) as they should be the same.
As for the poster talking about different underwriters, that’s a broker. The rules won’t apply to different underwriters but will to specific ones. E.g. renewal from underwriter x should be the same as a new price from x but y may undercut.
On other posts, only examples from January 2022 onwards are relevant to the new FCA GI Pricing rules.
P.S. when you say still not obeying the rules, prior to Jan 22 the difference in pricing was permitted. Morally dubious but anyone who shopped around benefitted, especially since cashback was still permitted at that time too!
As for the poster talking about different underwriters, that’s a broker. The rules won’t apply to different underwriters but will to specific ones. E.g. renewal from underwriter x should be the same as a new price from x but y may undercut.
On other posts, only examples from January 2022 onwards are relevant to the new FCA GI Pricing rules.
P.S. when you say still not obeying the rules, prior to Jan 22 the difference in pricing was permitted. Morally dubious but anyone who shopped around benefitted, especially since cashback was still permitted at that time too!
Edited by Dingu on Tuesday 29th March 21:54
MustangGT said:
Doofus said:
My LV multicar renewal was 30% down on last year.
We are moving away from LV after 4 years. This year they are nowhere near on price compared with a similar insurer on like for like.Also our LV= house insurance went down this year, and is cheapest among the well-known brands after comparing.
ETA: separately, I asked for a quote on the LV= house insurance as a new enquirer, it was about 40p dearer.
Edited by Pica-Pica on Tuesday 29th March 22:57
I was aware of the pricing rules from January, but I hadn't been aware that 'cashbacks' weren't allowed any more. 
I've had hefty cashbacks in the past by buying through Topcashback. You can still get cashback using one of their links to a comparison website, or you buy a multi car policy or short term cover, but not a 'normal' policy.
To the OP, I presume you'd accepted renewal before realising. I always check around when I get my renewal notice, you're 'supposed' to get 28 days notice. Stuff about 'cancelling' and starting a new one sounds dubious to me. If you just let the existing policy expire, any policy would be a new one, wouldn't it?
I've had hefty cashbacks in the past by buying through Topcashback. You can still get cashback using one of their links to a comparison website, or you buy a multi car policy or short term cover, but not a 'normal' policy.
To the OP, I presume you'd accepted renewal before realising. I always check around when I get my renewal notice, you're 'supposed' to get 28 days notice. Stuff about 'cancelling' and starting a new one sounds dubious to me. If you just let the existing policy expire, any policy would be a new one, wouldn't it?
Edited by sixor8 on Wednesday 30th March 10:23
sixor8 said:
I was aware of the pricing rules from January, but I hadn't been aware that 'cashbacks' weren't allowed any more.
I've had hefty cashbacks in the past by buying through Topcashback. You can still get cashback using one of their links to a comparison website, or you buy a multi car policy or short term cover, but not a 'normal' policy.
We insured our cars last December, separately with LV=, as already stated, through Go Compare, the added bonus was that Go Compare covered £250 excess on each, that was issued as a separate ‘free’ insurance policy for that excess. Some extra benefit for many years of no claims, at leastI've had hefty cashbacks in the past by buying through Topcashback. You can still get cashback using one of their links to a comparison website, or you buy a multi car policy or short term cover, but not a 'normal' policy.
TwigtheWonderkid said:
Sheepshanks said:
They've always been random on cost and that seems to be even more exaggerated since they were acquired by Allianz.
I thought LV acquired the Allianz personal lines business, and Allianz acquired LV's commercial business?Stuff here (which I haven't fully read): https://www.lv.com/insurance/about-us
Brother was with Hastings and his renewal was a disgusting figure. Normally it's a case of phone up, haggle down and renew for another year. But on a comparison, Lloyds were £250 cheaper with the same policy. Phoned them not to renew and they could only drop £30, then tried to argue his new policy must be wrong. It isn't as I've double checked it for him.
I can't stand dealing with them and if you every claim it's always a nightmare.
I can't stand dealing with them and if you every claim it's always a nightmare.
In answer to the original question- of course not -they will use any trick to circumvent this - including
1 Using a different trading name on different platforms
2 The regulations say effectively ' the same price as new business on the same distribution channel ' ie direct. broker market, comparison websites can all have different figures
3 launching a 'new policy' with a new policy wording for new business whilst strangely charging more for renewals.
Caveat emptor
1 Using a different trading name on different platforms
2 The regulations say effectively ' the same price as new business on the same distribution channel ' ie direct. broker market, comparison websites can all have different figures
3 launching a 'new policy' with a new policy wording for new business whilst strangely charging more for renewals.
Caveat emptor
My renewal price received yesterday is £20 less than last year. 
It's also £10 cheaper than any company using the meerkat site, whose cheapest was Hastings...... They often are for me, but I wouldn't recommend them. So, for the first time in about 10 years, I'll be renewing with the same company; the law change has been effective for me.
The post about different names, same company applies to them. 'Insure pink' is a Hastings platform; the screen fonts and layout are all identical with just a different banner.
It's also £10 cheaper than any company using the meerkat site, whose cheapest was Hastings...... They often are for me, but I wouldn't recommend them. So, for the first time in about 10 years, I'll be renewing with the same company; the law change has been effective for me.The post about different names, same company applies to them. 'Insure pink' is a Hastings platform; the screen fonts and layout are all identical with just a different banner.
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