Customer loyalty in insurance? No chance...
Discussion
Ive been with my blades insurance company for about 7 or 8 years. Lets call them swindon.
Renewal quote up from 140 to 250. Doesnt sound like much, but do it as a percentage. So i ring them, no budge on price whatsoever. Add to this i would have a combined voluntary and compulsory excess on the policy theyre offering me of over 900 quid. On a 1500 quid bike.
So i do the confused check, there are nearly thirty quotes before i get near what swindon are quoting. All with max excess of 350 all in. I tell swindon and all i get is a load of guff about them being reputable, easy paperwork staying with them etc, etc.
Nothing we dont already know, but surely keeping a customer is better than losing one and it must be possible to match? Over ten companies are quoting me 105 quid and theyre not marginal companies, theyre the big ones. Juat dont get it.
Renewal quote up from 140 to 250. Doesnt sound like much, but do it as a percentage. So i ring them, no budge on price whatsoever. Add to this i would have a combined voluntary and compulsory excess on the policy theyre offering me of over 900 quid. On a 1500 quid bike.
So i do the confused check, there are nearly thirty quotes before i get near what swindon are quoting. All with max excess of 350 all in. I tell swindon and all i get is a load of guff about them being reputable, easy paperwork staying with them etc, etc.
Nothing we dont already know, but surely keeping a customer is better than losing one and it must be possible to match? Over ten companies are quoting me 105 quid and theyre not marginal companies, theyre the big ones. Juat dont get it.
I would think they're banking on renewing customers who forget to change before the date - offer ludicrously low first-year premiums, then jack up the price at year 2.
That said, I renewed my car policy with insure.co.uk for the same as last year, which was competitive at the time, so I was quite pleased with that. The usual supermarket sweep didn't bring up anyone offering better equivalent insurance, so I stuck with them!
That said, I renewed my car policy with insure.co.uk for the same as last year, which was competitive at the time, so I was quite pleased with that. The usual supermarket sweep didn't bring up anyone offering better equivalent insurance, so I stuck with them!
So move?
If there's no loss to you, ie. it won't require huge effort or cause you to lose good service, switch to one of the cheaper providers. If there is a loss to you, then what they told you on the phone is correct
This often happens. You might find that if you go in with a lot of bluster about loyal customer, prepared to cancel renewal right now, blah blah, they'll drop it a bit but they're hardly going to halve it. And since it isn't a high-value policy, they aren't going to be that bothered to lose it.
If there's no loss to you, ie. it won't require huge effort or cause you to lose good service, switch to one of the cheaper providers. If there is a loss to you, then what they told you on the phone is correct
This often happens. You might find that if you go in with a lot of bluster about loyal customer, prepared to cancel renewal right now, blah blah, they'll drop it a bit but they're hardly going to halve it. And since it isn't a high-value policy, they aren't going to be that bothered to lose it.
I think this is the norm now, for years I stayed with the same company as they were always there or thereabouts the cheapest and value for money quote.
But in the last three years I've had to switch company every year for a massively cheaper quote. This years example renewal is £650 but I've had quotes of £280-£400 from rival companies, all as OP said from big outfits.
But in the last three years I've had to switch company every year for a massively cheaper quote. This years example renewal is £650 but I've had quotes of £280-£400 from rival companies, all as OP said from big outfits.
McSam said:
So move?
If there's no loss to you, ie. it won't require huge effort or cause you to lose good service, switch to one of the cheaper providers. If there is a loss to you, then what they told you on the phone is correct
This often happens. You might find that if you go in with a lot of bluster about loyal customer, prepared to cancel renewal right now, blah blah, they'll drop it a bit but they're hardly going to halve it. And since it isn't a high-value policy, they aren't going to be that bothered to lose it.
I agree it's common place, just seems odd they cant match quotes from so many other companies. May be a cheap policy, but 100% of 100 quid is more than 0% of 250!If there's no loss to you, ie. it won't require huge effort or cause you to lose good service, switch to one of the cheaper providers. If there is a loss to you, then what they told you on the phone is correct
This often happens. You might find that if you go in with a lot of bluster about loyal customer, prepared to cancel renewal right now, blah blah, they'll drop it a bit but they're hardly going to halve it. And since it isn't a high-value policy, they aren't going to be that bothered to lose it.
seanh said:
What I find amusing is that when you cancel because they won't come anywhere near the price you can get the same policy elsewhere, they'll still bombard you forever afterwards with junk mail telling you how much of a valued customer you were and how you should come back to them.
Every year I get a letter from one company asking if I want insurance on a car I haven't owned in 3 years, and I never even had a policy with them in the first place, I only ever had a quote from them.KingNothing said:
seanh said:
What I find amusing is that when you cancel because they won't come anywhere near the price you can get the same policy elsewhere, they'll still bombard you forever afterwards with junk mail telling you how much of a valued customer you were and how you should come back to them.
Every year I get a letter from one company asking if I want insurance on a car I haven't owned in 3 years, and I never even had a policy with them in the first place, I only ever had a quote from them.kambites said:
I don't think insurance companies have the concept of loyalty discounts - they simply plug your details into their statistical systems and see what comes out the other end.
Dont you think it's worth them having a closer look at practice though? Taking my case in isolation theyve lost 100 quid. Thats a price 20 odd other companies have offered so it must be possible for them to as well? 100 quid isnt much as an isolated incident, but id have thought with the amount of these we see popping up in threads that it's worth a closer look by the companies doing it.VinceFox said:
kambites said:
I don't think insurance companies have the concept of loyalty discounts - they simply plug your details into their statistical systems and see what comes out the other end.
Dont you think it's worth them having a closer look at practice though? Taking my case in isolation theyve lost 100 quid. Thats a price 20 odd other companies have offered so it must be possible for them to as well? 100 quid isnt much as an isolated incident, but id have thought with the amount of these we see popping up in threads that it's worth a closer look by the companies doing it.Regardless of what people think insurance premiums are watched by their respective insurers like a hawk on prey one simple screw up and it could cost them thousands in lost revenue.
Loyalty exists to a certain extent but you could view it as two way, how much loyalty do you have for your insurer if you're looking to jump ship the second their premium goes up?
There's a good chance that if you a policy that has renewed many times your insurer may be more flexible in the future i.e. during claims, adding temporary car, temp drivers etc etc.
kambites said:
I don't think insurance companies have the concept of loyalty discounts - they simply plug your details into their statistical systems and see what comes out the other end.
Admiral were going to grace me with a £50 loyalty bonus if I renewed with them, which would have been nice, might have renewed with them if they hadn't pushed my premium up by £500 from the previous year, and wernt still £1000 more expensive than the cheapest I had already found and wouldnt price match.Edited by KingNothing on Tuesday 21st August 15:33
Edited by KingNothing on Tuesday 21st August 15:35
monthefish said:
It is the opposite with insurance companies; if you stay loyal, they shaft you. It's been that way for years.
Simple answer is move every year.
I respectfully disagree, having managed to negotiate (sometimes sizeable) reductions in premiums from the same company who I've used for four years now, despite their consistently inflated renewal quotes and having to change the policy at least twice a year (four changes of address, two changes of car, one correction to documents, one addition of business use). Sadly for them, I will likely be moving on next year, but through no fault of their own (hopefully insuring with IAM Surety).Simple answer is move every year.
Admiral were cheapest for me both this year & last.
39, full protected ncb, declared mods, legal/windscreen cover, £250 excess.
Car parked on driveway, used to/from place of work + socially. 5k miles per year, partner as named driver.
£270 on an Astra GTE 16v was the best last year.
£250 this year after quoting the best price on price comparison websites of £259.
I disagree with the OP.
39, full protected ncb, declared mods, legal/windscreen cover, £250 excess.
Car parked on driveway, used to/from place of work + socially. 5k miles per year, partner as named driver.
£270 on an Astra GTE 16v was the best last year.
£250 this year after quoting the best price on price comparison websites of £259.
I disagree with the OP.
The Moose said:
I'm really sorry, but why the hell is this thread popping up...again?!
It's not like this exact thread hasn't appeared on PH eleventy billion times before...
Cheers, the moose.It's not like this exact thread hasn't appeared on PH eleventy billion times before...
I guess what i'm trying to say isnt so much just "oh look, they tried to charge me more, etc, etc" as we all know that happens.
I just cant get my head round turning business away and am genuinely curious as to if theres some reason inside insurance that would explain this.
zygalski said:
Admiral were cheapest for me both this year & last.
My daughter was insured with them from 21 to 25 with the premium slowly dropping as she got older and NCB increased, despite a background of rising prices.Then her renewal arrived when she was 25 and the premium nearly doubled! They offered £70 'loyalty' discount but were still way out compared to all the usual suspects. Bonkers.
Gassing Station | General Gassing | Top of Page | What's New | My Stuff