Why does the AA reduce its membership premiums so readily when negotiated with?

Regarding increases on AA renewal, my wife and I have dual cover and were asked for £163.86 to renew, reduced to £131.05 if we took out an AA credit card. I had a quote from the RAC for £95. On contacting the AA threatening to change unless cover was under £100.00 they reduced the renewal to £98 without the 'gold membership', which leaves me with Roadside, Homestart (complimentary because of number of years membership) Relay and Joint Cover. It pays to complain.

Asked on 9 January 2012 by TB, Orpington

Answered by Honest John
No, it pays to negotiate. Your experience is the way most Private Equity Fund businesses are run. Same for insurance. They reckon on getting away with it half the time, but at the end of the day would rather keep your business than lose it. This is the 'business model' that buys the yachts in Monaco harbour. Read Robert Peston on the subject.
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