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Insurers Will Be Banned From Penalising Loyal Customers


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#16 Tornado99

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Posted 29 May 2021 - 06:20 PM

We see this same issue in the telcom  and cable TV providers here in North America. The deals are typically only given to folks switching to new providers....while those being loyal get routine rate increases. The way to thwart this is to contact your provider and tell them you are considering to switch to another company, at a great rate....see what they then offer to keep you! Seems to work out satisfactorily for most. 



#17 mab01uk

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Posted 29 May 2021 - 06:54 PM

We see this same issue in the telcom  and cable TV providers here in North America. The deals are typically only given to folks switching to new providers....while those being loyal get routine rate increases. The way to thwart this is to contact your provider and tell them you are considering to switch to another company, at a great rate....see what they then offer to keep you! Seems to work out satisfactorily for most. 

 

Same here in UK with utility companies (above changes only apply to car and home insurance). Every year I have to phone my telcom/cable provider after the annual out of contract price increase, say I am leaving and am then put through to 'customer retentions' who revert the price back for another year.


Edited by mab01uk, 29 May 2021 - 06:55 PM.


#18 mab01uk

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Posted 29 May 2021 - 07:01 PM

 

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).

 

 

Admiral have been good with me on a multi-car policy for many years and gave me a lockdown refund. However this year the price went up for no good reason (old price now has to be shown on your renewal offer) so i phoned up and complained and within a few minutes the price was put back down to last years figure. If they did not make money doing this companies would stop but it is known as 'customer inertia.'

ie. the tendency of some customers to buy or continue buying a product, even when superior options exist. Companies that can accurately account for consumer inertia when setting prices make more profit....


Edited by mab01uk, 29 May 2021 - 07:01 PM.


#19 wilsonch

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Posted 29 May 2021 - 09:18 PM

I (and probably others) have had this.
Renewal quote is more than last year.
Go on price comparison site, find a quote less than current quote....From the company you are already with.
Alway makes me laugh.
But generally manage to get the lower quote.
But as already said, it takes time and effort.

#20 Ethel

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Posted 30 May 2021 - 12:41 PM

I (and probably others) have had this.
Renewal quote is more than last year.
Go on price comparison site, find a quote less than current quote....From the company you are already with.
Alway makes me laugh.
But generally manage to get the lower quote.
But as already said, it takes time and effort.

The best bit is cancelling the automatic renewal afterwards, then getting a letter telling you  won't be insured in the same post as the new certificate.

 

Even had them ring me to offer a better deal that isn't competitive either - think that's down to them offering bulk discounts to the price comparison sites & them passing on a % of it to customers.

 

I'm now using Direct Line, they offer fair renewals & are competitive if you want the extras like a bit of breakdown cover.



#21 Ethel

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Posted 30 May 2021 - 12:59 PM

We see this same issue in the telcom  and cable TV providers here in North America. The deals are typically only given to folks switching to new providers....while those being loyal get routine rate increases. The way to thwart this is to contact your provider and tell them you are considering to switch to another company, at a great rate....see what they then offer to keep you! Seems to work out satisfactorily for most. 

We get that too, hard to think of anything in the UK with a single price structure  :unsure:

 

Didn't know about your insurance model - I have wondered if we would benefit  from a universal basic cover model:

 

It ought to be cheaper without the profit element & it'd remove uninsured driver issues at a stroke. It could be funded through fuel duty, or tied in to whatever we'll need to do when there are more electric cars skipping that revenue collection route. Paying to drive, instead of annual charges, would balance the more environmental option of taking public transport more fairly - when it's available.

 

You'd still have insurance to cover your own risks - never thought it was particularly fair that my insurance has to cover somebody else's choice to drive around in a car that could  have cost more than my house!



#22 Cooperman

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Posted 02 June 2021 - 10:02 AM

During lockdown I took my BMW off the road. When the insurance was due I called my insurer, the RAC, and they said to renew when I wished.
However, I sold the 7-Series and I have acquired another BMW which I called to insure yesterday. The last insurance for the 7 series was £300, but for the 3-series I have bought they quoted over £500.
Just before calling them, I consulted the Meerkats and with identical info the RAC came up with a price of £306.
I have been insured through the RAC for over 8 years and my wife has been insured through them for 3 years.
I insisted that I would only accept the £306 and did the deal. Now I shall write to their CEO pointing out how they treat loyal customers and how they tried to rip off a pensioner. I might send a copy of the letter to the Daily Mail.




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