21 replies to this topic

[mab01uk]

"Insurance companies will finally be banned from penalising loyal customers with higher renewal costs, the financial watchdog announced today. 

The Financial Conduct Authority (FCA) said it is cracking down on unscrupulous firms to end the practice where existing customers are offered quotes that are higher than new ones.

Regulators found last year that millions of customers were being unfairly charged higher prices, including an extra £1.2 billion in 2018 alone.

Insurers will be required to offer renewing customers a price that is no higher than they would pay as a new customer."

https://www.thisismo...-customers.html

 

 

[Tornado99]

So does that mean insurers will just up the pricing to new customers as well?
Seems better to just shop around for better pricing and switch providers if pricing is that much better.
Here in my province of BC Canada, auto insurance if government run, so we have no choice but to take whatever is the price offered.

[PoolGuy]

It will mean that those of us who don’t auto renew will get charged more and the lazy people who don’t shop around will benefit. It’s another one of those things that looks good but isn’t.

[dyshipfakta]

Yeah I agree just means everyone will get shafted instead of just the lazy

[wilsonch]

Too right poolguy.
How long have programms been talking about shopping around.
If you dont know that loyalty isnt rewarded then you must be living under a rock.
Now, those people who put in a little effort to shop around just might as well not bother.

Does this mean that price comparison sites will die out??

[mab01uk]

Does this mean that price comparison sites will die out??

 

I doubt price comparison sites will be affected...most people will still compare their insurance quotes as insurance companies will still need to compete for business and it looks like the utility companies, etc will still be able to rip off loyal/lazy/living under a rock (delete as required) existing customers. Unfortunately the 'loyal' customers who tend to get ripped off are often the least able to afford it, or from an older generation who are not so up to speed with finding the best deal on the internet using computer or smart phone technology.

 

I have to phone up Virgin Media every year to negotiate a better price contract for broadband/phone/tv package by threatening to leave them for a competitor like Sky or BT, their retentions dept always cut the price in the end after lots of sales waffle and a long phone call but I do hate the time and effort involved every time.

Edited by mab01uk, 29 May 2021 - 08:05 AM.

[MatthewsDad]

I have insured my daily driver with the same insurer for the last few years. I do shop around before renewing but the renewal quotes have been on the money.

[petey81]

I have received a renewal price of 40% more!! I've called and they match or beat a price I have found online.

[Ethel]

Some had already fixed their ways.

 

Surely holding on to your existing customers ought to deliver savings in admin, advertising & comparison site royalties? So any discounts we got must've been at the expense of other customers.

[Steve220]

Good. Lancaster tried adding £100 to my van's insurance without reason. The call centre got an earful from me about them taking chances on loyalty.

Edited by Steve220, 29 May 2021 - 11:56 AM.

[PoolGuy]

Some had already fixed their ways.

That’s true, our car is with Admiral and not only have they not increased our premium for the last two years, they gave us a partial refund last year because the car was used less because of lockdown, it was offered, we didn’t have to ask. That’s how you look after customers. (I’m sure some have a shocking tale to tell about Admiral, but our experience is good).

[sonscar]

The problem to me is who is going to police this?what would be the penalties?will they care?.
Insurance adverts for anything on TV seem to say;crash as much as you like,claim for everything,pets,house,car,phones,etc etc.Perhaps this attitude would be better looked at.In the words of my 80 yo father in law ROBBERS,THIEVES.Good luck with this,Steve..

[PoolGuy]

The problem to me is who is going to police this?what would be the penalties?will they care?.
 

I suspect that they’ll care https://www.fca.org....ries/2020-fines

[roblightbody]

Great news. 

 

Esure tried to renew my daily driver at £420 despite me being loyal to them for many years (they were good after I had a crash) but when I shopped around it was £210 with better cover elsewhere, so they've lost me permanently as a customer.  How can that be good for them?

[sonscar]

Every day someone new passes their driving test,fresh supply of customers,Steve..