I pay around £375 to insure my car which includes protected no claims and legal protection.
I obtained a quote from my current insurers web site. As far as I can gauge its like for like. The quote came in at £250 less 10% for applying on line. So much for loyal customers eh?
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Did you make sure the details you put in to the online quote were exactly the same as your current policy? I did an online quote when my renewal came through and it was £70 less. When I checked the detail my renewal notice had lower voluntary excesses. I lowered the excess for the online quote and the quotations matched.
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A couple of years ago when phoning renewal confirmation, the operator suggested I call another number of the same co. as a new customer.
Saved me over 25%, so I get the impression new customers are much more highly valued.
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An online quote will be cheaper because the overheads are much lower.
I used to be with AXA and a couple of years ago the renewal price went up by around £20.
As always, I checked around on the Net and eventually decided to post my details into the AXA website. To my surprise it was about £17 cheaper at £156.
So I rang AXA seeking an explanation. A pleasant operator pointed out that the online service was a separate department and that I would be wise to take up the lower offer as she couldn't match it.
The reason was, as I said earlier, due to lower operating costs for the online division.
I'm surprised that anyone can renew the same insurance cover with the same company as a new customer - its database would usually very rapidly point out that the details are already on record.
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I get the impression new customers are much more highly valued.
I would agree with this assement but I was talking to a friend of mine (he works in insurance but not motor insurance). Anyway this is what he told me.
A renewal for any insurance company is as close to "free money" as any company is gonna get.
To process a renewal the company enters the new premium, click of a button and bish bash bosh sorted. The paper work is all sorted and printed off automatically.
His company would rather renew 100 policies that make him £5 each than 1 new policy that makes him £500 for the simple fact is taht he does 3 mintue work in the 1st instance a hors work in the 2nd instance.
Compared to the processing involved in creating a new policy which is every bit as involved as you can imagine.
So I'm always bemused why company work so hard to capture new business instead of servicing existing business better.
Bizarre way to do it if you ask me.
JaB
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>>why company work so hard to capture new business instead of servicing existing business
Retention levels are such that a proportion of your customers will remain with you anyway. It may be that the retention is sufficiently high that you consider that the business you do lose is not much above normal wastage. As such you may then believe that churn is not of significant importance this year.
It may be that you believe that your retention will be sufficiently high that the primary route towards growth will be the attraction of new business. Given that you are likely to decide to put your efforts into the attraction of that new business. It is possible that your investment may be spent as marketing and advertising; but it could also be spent on lowering new premium rates.
Finally you may decide that your portfolio and risk profile is not as you would have it. Therefore rather than blanket reductions of new premiums you may choose to lower them in specific areas to attract a particular risk, ignoring the fact that you will have some renewals within that profile because you believe that you will retain sufficient of them anyway.
etc. etc. etc.
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I recently saved over £100 (ie 23%) on my renewal quote by using an online search facility. All details identical.
So what?, you may ask.
The search provided me with a quote from Churchill. My renewal was from..........Churchill.
Lesson: always shop around.
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That's strange. The point I mentioned about the details with an insurer already been on the database arose because, after the time the Pru made its agents redundant, I searched the Net for alternative buildings/contents cover some months later.
The only company to reject my application and form filling details was Churchill with the message they were already held.
I found out a few minutes later that the Pru had passed on the underwriting business to Churchill...:-)
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Insurance companies appear to be run on the basis "screw the customer when it comes to renewal. New customers are best". There are notable exceptions - Direct Line.
I am finding Esure are undercutting my present Direct Line price and will be interested to see my renewal premium (it fell last year).
On line data entry is much easier and cheaper.. and if anything goes wrong it is the customer's fault!..
Insurers have a business model regarding new customers which is imo - just plain illogical. Existing customers should be valued and not screwed. But then the history of most insurers shows that good management / sensible business models and insurers are ships that pass in the night. (see the Prudential and Egg saga for one example..)
madf
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See this thread re DirectLine surprise:
www.honestjohn.co.uk/forum/post/index.htm?f=2&t=24...9
Esure is a broker (Halifax) - nine times out of 10 it's better to go directly to an insurance company.
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my 2pence:
I found that Tesco online gave a non online renewal, I had to go to the website again to say I was a new customer again, to get my 5% discount.
Also OP, yes, you should check all the particulars extras & excess's are the same for both quotes.
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was kev_is_here
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