Avoiding "The loyalty Penalty."

Doghouse Riley · 10-02-2012, 03:00 PM

I may be "preaching to the converted" but there might be some who aren't aware.
Each year we get renewal notices for our insurances, car, buildings and contents etc.,

I've just had mine for my buildings and contents. I always look for alternative on-line quotes, even from my present insurers. As it is, the best on-line quote was from my present insurers at 20% below what they wanted to charge me for next year.
So I've started a new policy commencing on the date that the old one lapses.

I've thus avoided "the loyalty penalty."

miles41 · 10-02-2012, 04:09 PM

I had exactly the same thing at the back end of last year; my insures (Lloyds) wanted nearly 3 times as much to renew

I called them to contest and after a bit of 'moaning', got it for the same price as the previous year and £50 cashback as a 'new' customer

Doghouse Riley · 10-02-2012, 06:45 PM

All insurers rely on their policyholders taking the easy option.

Often if you phone the renewal hotline and complain that if you went on line to the company you can get it a lot cheaper, they try to fob you off by saying "they can't do anything about it as it's a different department."
The last time I they said that, I told them that in that case "It'll be a different insurance company" so they caved in.
I never bother now, don't need the hassle, just go straight on line, it only takes a few minutes.

Doghouse Riley · 29-02-2012, 03:25 PM

Here we go again!
Green Flag has just sent me my renewal notice for breakdown cover (I've never needed any assistance "touch wood.")

They quoted me an increase of 30%

So I phoned LV, my car insurers got a quote and had it added to my policy. Saved myself £26.
When I phoned Green Flag to tell them to cancel the renewal direct debit, I was asked; "Is it because of the increase in premium?"
I said; "Yes."
"Well we can give you a discount."
I politely explained that the time to offer me a discount was at renewal. To offer it now was just adding insult to injury.
I can only assume most people renew as it seems a poor way of holding on to existing customers.

efficiencyman · 01-03-2012, 12:27 AM

I had a simmilar renewal increase from the AA. I told them I was going with the oposition giving much lower quotes.

After 40 years of hardly ever calling on the AA, they did`nt want lose me, and gave a massive MAX discount. with roadside relay, home start, stay mobile, breakdown repair, multi vehecle, family membership and in any vehecle.
It pays to put the pressure on!

geejay · 01-03-2012, 10:19 AM

Hi,

I've just had my car insurance renewal through and they've increased it by 40% on last year without making a claim and 10 years NCB !

What I've done for a number of years is use the guide featured on Cheap Car Insurance: Compare 200+ quotes & cashback... . It does take a bit of time but I've saved hundreds of pounds .

chagoi2 · 21-03-2012, 11:29 PM

Thanks for the heads up

It pays to shop around .

I,m dumping the Rac this year after breaking down and not claiming in over 7 years of membership only to get fobbed off and charged £130 for a tow home .

Had the car for 7 years , bought from a main dealer and the spare tyre size was not correct "apparantly" so they wouldn,t put it on the car (couldn,t do it myself as the lock nut sheared) .
My claim was nul and void and put down to user error .

Doghouse Riley · 21-03-2012, 11:38 PM

A growing trend is that insurers are getting wise to the fact that drivers find buying their insurance on-line is a real convenience, so the quotes are not always their lowest.
If you get an on-line quote, it's worth phoning the insurance company to see if it is any cheaper that way, but don't log out of the quote.

I can't say that it does happen because I never log out. My concern is that it could work the same way as searching for air flights. I'm aware that if you log out after finding a price and look for other airlines for a cheaper price, if you don't find one and go back to the first one and log in again, the site is aware what you've done, assumes you've not been able to find a cheaper quote, so the price you see this time has increased.

chagoi2 · 23-03-2012, 12:18 AM

There crafty so and so,s by the sounds of it !

It just goes to show you should always procede with caution with any online sale / purchase untill you are 100 % certain its a guinuine transaction.

Cheers

freddy · 25-03-2012, 09:26 PM

Hiya folks.

A couple of weeks ago I got my renewal for the car insurance. It was now up to around £550. "It's getting a bit much" I thought, so I went online to see how much I MIGHT be able to save. Well, I was delighted to find that I could get the same cover for....£250! It only took me a few minutes to sort it. I guess I'm one of those that lets things ride, I need to change my ways!

Cheers...Freddy.