Insurance renewal time is approaching.
Quote lands from my existing insurer, which is about £100 more than about a dozen companies via a comparison website.
For £100, I'm switching.
Both old and new companies are household names, and the policies are similar.
Of course, I'll never really know how good they are unless I make a claim, but on the information before me, the only major difference is the price.
What's the lowest difference you would switch for? £10? £30?
I wouldn't switch unless the saving was at least £30 or £40.
And is it a good idea to keep on changing companies?
I wonder what the new company will think if, perish the thought, I have to make a claim in the first few weeks or months.
Edited by ifithelps on 04/08/2009 at 10:54
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I wonder what the new company will think if perish the thought I have to make a claim in the first few weeks or months.
It doesn't matter. It's all done by numbers. The broker you use will pass your business on to an underwriting syndicate (sitting unobserved in the background) who will simply be interested in balancing numbers and odds. Should you claim, it may affect your future assessment, but that's all.
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Have you tried getting a quote from your old company as if you are a new customer?
Or just call them and say you're moving and see if they respond. Automatic renewal is good for this - you call to say you don't want to renew and they ask why and will generally offer a lower quote to try to retain you.
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As said above, get an online quote from the existing company. When we've done this we've reduced my wife's insurance by up to £100.
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Agreed. 'Sticky' customers tend to suffer as renewal prices are notched up little by little, year on year. If you would ideally prefer to stay with your present insurer (you like their paperwork, good experience in the past etc), you could call and see if they will match your quote from the other lot. Flatter them, say you reeealy want to stay with them, but the price isn't working etc etc. Worked for me.
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Quote lands from my existing insurer, which is about £100 more than about a dozen companies via a comparison website.
I would (..and have..) used comparison site quotes to encourage my insurer (..of the past 13 years) to lower their quote. I know the broker agent quite well & we always have a little haggle - so far they've been happy to lower their premiums to compete.
Oddly enough, I made a claim 7 years ago (so, 7 yrs NCB currently..) & felt quite 'guilty' , knowing that my, albeit modest, claim effectivley wiped out the premiums & profit they might have made. I'm probably just about in debit re cumulative premiums 7 years later.
I say 'oddly' because they're part of a huge multinational bank now & any concept of loyalty or guilt when it comes to their balance sheet imperatives is rather quaint & old-fashioned.
As you say, insurance is only useful in the breach & it's next to impossible to know how they'll perform when/if you claim.
The cold hard rationalist, of moneysavingexpert-type demeanour, would always go with the last-penny lowest quote I'm sure. But I'm willing to pay (or forego a lower quote) for continuity & familiarity with current product over a whole new wad of small print.
I also have an idea (perhaps naive) that a consistent insurance 'record' in some ways lowers my overall perceived or computed risk to insurers in general. Perhaps an underwriter or broker would care to comment?
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I also have an idea (perhaps naive) that a consistent insurance 'record' in some ways lowers my overall perceived or computed risk to insurers in general. Perhaps an underwriter or broker would care to comment? >>
I've wondered the same thing but find it hard to give it much credibility in the age of call centre, computer risked insurance.
I haven't changed my insurance company (domestic and car) for the last few years but have got them to reduce the premium by getting quotes elsewhere. While they haven't matched, they've pretty much split the difference. So shop around, OP.
BTW I seem to recall reading in the paper at the week-end that one of the major insurers (Aviva?) reckons it makes no money on car insurance.
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My wife and I changed a couple of years ago from More Than to Liverpool Victoria after we checked on the price comparison sites , the saving for me alone was around £130.
SWMBO had a no fault accident which was dealt with very professionally by More Than during our time with them.We had no quibbles with them on service, only price and they were given the opportunity to match prices but could not.
When my Accord was written off with flood damage within 6 months of changing I was more than happy with the service LV gave. Hassle free and helpful .
So I will certainly shop around when renewal come due but it would probably take a £30 -£50 reduction to get me to change .
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...get another quote from my existing insurer....
The existing insurer came up on the comparison site with the same quote as they had sent me 'privately'.
I appreciate that's not the same as me ringing them to haggle, but I decided to leave it there.
...read somewhere insurance companies make no money from car insurance....
I've read the same a few times over the years.
Makes no sense to me.
If there is no profit in car insurance, why spend so much on advertising for customers?
There will be an element of 'we can then sell the customer something that is profitable', but I can't imagine there will be enough of those sales to offset the writing of thousands of motor policies at a loss.
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I can't feel any loyalty to an industry which habitually quotes me higher as a loyal customer than they quote to a complete stranger for identical cover "walking in off the street".
Some companies do it right though. I have my ZZR600 insured with Bikesure, and at the past few years renewals, they started "throwing in" extras free of charge by way of a loyalty bonus. My excess has progressively dropped to £50, I have protected NCB free of charge, and they've thrown in some kit cover and other bits and pieces I never used to have.
I've had continuous cover with them for 5 years. It's worked.
Cheers
DP
Edited by DP on 04/08/2009 at 12:20
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I've done the "Get a quote on line from your existing insurer" thing. I found a £50 difference on a £190 premium so I rang up and they gave me the lower quote - this was LV. Barclays were offering a £50 cashback on home & contents insurance but I had been with them for 2 years and it didn't apply to a renewal so I moved on. It is always doing some research for any type of insurance.
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this was LV.
Both mine and Mrs Payer's cars have been with LV for some years. They knocked £60 off hers (which is relatively expensive as it has the kids on it) but on mine their online quote was £100 cheaper and they wouldn't get near it over the phone, so I cancelled and then took out a new policy online. I was a bit miffed that they made me do that.
We surely must be at the bottom now on premiums though - I opted out of a company car 5 years ago and got a Merc. LV gave me full NCB yet the premium has dropped from £500 to £200 over the 5 years. Even the insurance on the kid's cars seem pretty reasonable.
Edited by Bill Payer on 04/08/2009 at 13:15
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LV have priced matched for me in the past. This year the comparison site gave a couple who were slightly cheaper, less than 10%, but one was the company who only dealt by e-mail and one has call centre in India, LV use UK based call centres.
LV also provided me with excellent service for a travel insurance policy which is complicated due to an existing medical condition. They wanted for a family of three the same premium as the travel company wanted for one person and playing a 'top trumps' to compare the policies LV were better in every department.
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LV also provided me with excellent service for a travel insurance policy
They were getting a bit of stcik as they exclude pandemic cover - obviously very relevant at the moment - but they have announced that they will include it now (on both new and existing policies).
As a company, they have by far the most capable sounding call centre staff I've ever dealt with - in Bournemouth, not Liverpool as their old name might make people think.
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I can't feel any loyalty to an industry which
It's only "Loyalty to a broker", anyway. The broker will switch insurer as they can to get best returns, any you are unlikely to even be aware of it. It's not like, for instance, being a good regular customer at a fish & chip shop, where you might get the best bit of cod, or extra chips, or something - the only advantage in sticking with one broker is if they consistently have the best priced deal for your requirements.
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Just renewed my car Ins and for the 4/5th year did an on-line quote and my insurer was some £48 less than the renewal note said.
Phoned them up and they matched their own quote - still £8 more than the cheapest but not worth changing.
I am on NCB of 75% off, If I make a claim it falls to 73% so protecting NCB is not worth the £30!
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It's often a pain but it (shopping around for a better price) has to be done in this day and age because loyalty doesn't really count for anything now and the insurance market is always going to be competitive, but as you suggest, the company's service & efficiency in settling any claim is always going to be an unknown until the time comes to make that claim!
Interestingly, my annual combined Buildings & Contents insurance actually went down by £20.00 in July of this year and the insurer (Halifax since you ask) called me to alert me to that fact (I'd already realised) and to reassure me that my repeat business and continued loyalty was now a very desirable thing to them and that they really wanted to retain my custom.
I told them that I'd already shopped around and had obtained a couple of cheaper quotes but that they were still in the top 3, etc. So, even though I could have saved £30 I did ultimately decide to stick with them for another year ? heck, I only pay £155 per annum as it is, but in the land of RickyBoy every piece of renewal correspondence that drops through the letterbox is treated as a target figure to better ? sad but true.
My only recent (early 2000's/daughter's fault) motor claim experience was dealt with extremely capably by Churchill but it wasn't enough for me to remain faithful!
It's dog eat dog out there on the streets these days...
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The whole system is set up on the reverse of business logic.
Logic - and facts - say customer retention is key. The cost of acquiring a new customer is so high it wipes out year 1 profit.
So insurance companies offer the best deals to : new customers : and screw existing ones.
Illogical.. No wonder they lose money. they deserve to.
Edited by madf on 04/08/2009 at 16:28
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None what so ever.
Renewal with Saga middle of this month, £236 paid last year, extra year ncb and new Q over £400.
Quick trawl through the comparison sights, £200 fully comp.
Breakdown with home start and nationwide recovery an extra £36.
I switch every year, it,s cheaper.
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Renewal with Saga...
I know lists of "my insurance company is cheapest" are completely pointless but I did think that when I turned 50 at least car insurance would be cheaper with Saga.
OK, most quotes I get are probably way below average so that doesn't leave a lot of money to play with, but I've checked Saga the last couple of years and they're absolutely miles out.
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I've been with the same insurer for over three years, and due to a change in their policy I now have to pay for a Green card to drive in Europe and be fully covered, and at £25 I felt it was an insult to a loyal customer, I put my case forward to the guy on the phone but they wouldn't budge, next year I will seriously think about changing because of this.
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Don't forget if you change your insurance company to let the other one know in good time.I assumed that if i didn't pay the previous company any money then they would cancel the policy.This is not the case and you have to notify them that you won't be renewing the policy.Otherwise they just take the money out of your account and when you ring up to complain they will refund the amount but minus an admin charge which, in my case, wiped out the saving i'd made with the other company.You have be warned!
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I've been with the same insurer for over three years
How do you know?
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>> I've been with the same insurer for over three years How do you know?
Of course you know. the Policy comes from the Insurer, not the Broker. Am I being thick or.................
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I put my case forward to the guy on the phone but they wouldn't budge >>
guy on the phone = guy who does not have authority to over-ride "computer says no".
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If guy on phone will not budge, ask for their manager.
The system is designed that way to ensure few discounts are given...
(Youngest son sells insurance!)
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(Youngest son sells insurance!)
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With the Greatest respect, your Son may sell insurance, but he has limits, barriers, conditions and everything else that these companies (Insurers/Brokers) place in his path and he can only 'move' as far as they will let him. If you think otherwise then you are wrong. Please don't take this the wrong way, but rest assured....I am right.
Insurance is a strange industry. It is an investment industry and your premium is invested in all sorts of markets and due to the necessary fluidity of markets, a premium today may be dearer tomorrow. It doesn't always pay to base your decision on price. A friendly (competent) face at the Broker's has always proved an asset for me, as does my/your attitude in a claim situation.
My advisor, in all manner of Insurance areas states this. Insurance is best reserved for calamity. Don't view it as a chance to 'earn'. keep cover and a big excess to keep premiums down. Not necessarily motoring ins'.
My words now. Consistency of Insurer may be favourable, but not guaranteed. I know through 34 years of self employment, that the lowest cost usually, but not always, carries a compromise.
Brokers have deals. Big brokers buy blocks of premium and re-sell. They are a business and look to maximise profits. I believe that most punters miss this point. I may be wrong, but don't tell the Wife, who, incidentally, has the hump tonight. All usual suggestions are barred boys!
I am orf to the land of nod now as this may be the second post that I have chuffed up!!
Tired to death..................MD
{double post merged into one at MD's request}
Edited by Dynamic Dave on 05/08/2009 at 02:16
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I am very pleased to see this thread, as I was worrying about exactly this matter a week or so ago.
A year ago I had a policy come up for renewal on the "automatic renewal" system. I went on to a comparison website and found that the same company was ready to issue a policy at a significantly lower price. I rang the company and, with I have to say considerable difficulty, managed to persuade them to "cancel" the policy and issue a new one - which I took care to say should not be automatically renewed. This year I received a renewal quote at a considerably higher cost. On to comparison sites again and, lo and behold, there is the same company offering "new" policies at a greatly lower price. This time I simply clicked "Buy". But I felt uneasy about it and rang the company and slipped in the fact that the policy I was letting go was with them. Answer from chirpy staff-member:"That's OK, lots of people do that"!
So I have, in my way, been loyal to the same company for many years; but I don't feel they have been very loyal to me! Strange world. I have become very suspicious about "sticky" products.
PS Didn't I read somewhere about automatic renewal being outlawed?
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PS Didn't I read somewhere about automatic renewal being outlawed?
Never heard that - I think it's a good thing, you never know, you just *might* forget for some reason and the policy gets renewed.
It also gives you the chance to call and cancel and they'll usually try to retain you.
I do think the comment made by someone else saying there was an admin charge when the auto-renew happened after being cancelled is a bit much - I'd be having words if I was asked to pay that.
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When this year's renewal came through (More Tha
They gave me £30 off without too much trouble (£over 10%!)
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