Why is insurance cheaper for new customers rather than those renewing?

I am in the process of changing my car. The new one has a lower insurance rating than the previous one. Over the last 10 years I have not paid more than £250 for comprehensive insurance. When seeking to change over the insurance I was not only asked for a fee for doing so (which I expected) but also for over £100 extra for the next ten months. In the end, I decided it was cheaper to pay a cancellation fee and buy a new insurance policy from another insurer. Is this a form of dual pricing? If so is there anyone to complain to?

Asked on 19 July 2019 by Ian Aveyard

Answered by Tim Kelly
Just because a car has a lower group rating does not mean it is cheaper to insure. When you are on your existing policy, you are tied in and you will have been quoted normally. A new quote will be discounted. In short, you cannot complain to anyone, the FOS and FCA will take no attention as the insurer has done nothing wrong.
Similar questions
My 18-year-old son has been a named driver on our car insurance for 18 months or so without incident. He recently started a job as a delivery driver for Waitrose, driving a Sprinter van. He works part...
My daughter (aged 24) is buying her first car. She has driven for six years with no convictions or claims. She has recently moved to Manchester and the cheapest quote on a comparison site she is getting...
I have nine years NCB up to April 2018. Normally I would be able to use this within two years on a new policy. After 18 months living abroad, I am returning to the UK and buying a car. Can I still use...
 

Ask Honest John

Value my car