British econ me

I just received my car insurance renewal from a well-known company. Last year it was £597.00. This year it had gone up to £984.30. I tried and the same insurer has re-quoted a price of £577.85. Same recently for House Insurance renewal £330. I went on , got a quote for £130 and noticed it was underwritten by the same company I already have insurance with. I re-contacted them and was re-quoted £127, saving £203 with the same company. How do insurance companies have the audacity to quote such high figures for renewals?

Asked on 30 May 2009 by

Answered by Honest John
Because they can. But the fact they are doing this needs broadcasting so they can't get away with it. That said, the more punters they catch at the high premium, the more they can sell at the low premium. Your new low premium is being subsidised by some other sucker.
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