Why does the RAC try to increase its insurance premiums upon renewal?

Regarding the email from PC of Lee, I received my RAC Insurance Renewal and the premium had gone up by £150 (with no claims in previous year except a small windscreen repair). I got onto their website and entered my details and the premium came back £120 less than the renewal premium. I called RAC and pointed this out to them and they then offered me a renewal at the web price i.e. £30 more than the previous year and no hassle moving to a new provider.

Asked on 2 November 2012 by BH, Bromley

Answered by Honest John
I get several emails a week from readers who have done exactly that. If you cant beat them, join them.
Similar questions
I realise that this is a topic that you have covered many times, but I continue to be amazed at the AA’s concept of how to reward customer loyalty. Last year my wife paid £79 for breakdown cover for herself...
Last November I received my RAC Breakdown renewal notice for £147.50 less Membership Savings £80.75, net charge £66.75. I had to call them out before the renewal date of 1-1-11 and a Direct Debit of £120.15...
I recently damaged my radiator on a high kerb and called the RAC for assistance, not wishing to involve my insurers thinking costs would be relatively low. My membership did not cover the incident, but...
 

Value my car