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New Insurance Sub-Forum

Discussion in 'Insurance' started by tomv, Jan 31, 2011.

  1. tomv

    tomv Admin

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    We all have to make the decision of whether to renew or find a new insurer each year. And given the recent hikes in insurance renewals, we thought it would be nice to have a separate area to discuss these matters.

    The forum has teamed up with Chris Knott to provide MBO insurance at a competitive cost. In fact they'll have a go at beating your best quote.

    This also means we'll have the services of an insurance specialist to answer questions about insurance and how to get the lowest quote you can.
     
  2. McDonald

    McDonald Senior Member

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    My renewal notice came in this week. LV wanting almost £400 for a 2nd Car, social use only, limited mileage. Got onto the price comparison sites and found fully comp incl no claims protection & legal protection £258.90 - from LV!
    Insurance companies punish customer loyalty as laziness and reward the active consumer.
     
    alexanderfoti and Wighty like this.
  3. 400ixl

    400ixl Senior Member

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    By far the people who just renew is through laziness and not brand loyalty. Therefore they need to go after the new business which needs to be done at a competitive rate, whilst maintaining their ability to stay in business. A very efficient and competitive general insurance company makes sub 10% profit, with many making losses on this type of business.

    If they were actively trying to punish loyalty, they would actively enforce their "new customers only" pricing, which they don't. They take advantage of lazy consumers to fund winning new business. It is no longer viable to switch to a model where they keep renewals lower as this would drive up new business prices and the smart people would leave and they would have no market rate to win them back.

    Business dynamics drive the model.
     
  4. McDonald

    McDonald Senior Member

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    My father made the mistake of using an insurance broker to buy his car insurance. This may have been good practice before the internet was invented. When he was 90 yrs old (still driving) with many years of no claims (30+) he was troubled to get a renewal notice at over £900 but felt it was an unavoidable aspect of old age. He was driving a 1300cc car and doing around 1,000 miles a year - he wanted the independence of going to the shops to buy groceries.
    Peugeot sent him the reminder for his annual service, knowing he'd cough up meekly.
    When he mentioned the cost of his insurance, I got onto the comparison websites and renewed his insurance for £400.00. I believe the insurance brokers who had been 'looking after him' for over 30 yrs were no better than the cowboys who rip off the elderly doing unnecessary work on houses - 'Yer roof looks dodgy sir, would you like me to get up there and fix it...' The brokers must have been scouring the nation's insurance companies to find the one that paid the most commission.

    Some people are not lazy, they are vulnerable and 'business dynamics' stink.
     
    Jimbo1959 and LostKiwi like this.
  5. LostKiwi

    LostKiwi Senior Member

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    Ain't that the truth. In the past there was a certain amount of loyalty between employers and employees, companies and customers.
    These days it's rare to find it from businesses but they still expect it from employees and customers.

    It seems a common phrase bandied about these days is "it's nothing personal, it's just business" as the marvellous excuse for anything a company does that is disloyal or unethical.
     
    davemercedes and GLK like this.
  6. davemercedes

    davemercedes Senior Member

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    Well done McDonald 600 quid in his bank where it belongs! I gave up on brokers a few years ago when my local place came clean (I think it was a new regulation) and printed their brokerage charge on the renewal document - just for playing post office and selling on a policy that they earn about 33.33% on in the first place they wanted to stuff me £6! - and I've never gone back. I think for "looking after customers" they nearly all fall under the showbiz joke of sincerity (i.e.: if you can fake that you're home and dry heh heh).

    The good news though is that even if the comparison sites fail, a phone call often works - my policy with LV has all the "bits" I need and after looking at Meerkats etc I've renewed the last two years with them after phoning and getting a reduction. I detest it and think they should be falling over themselves to insure people like me - not having had a prang for 30-odd years but now I just accept it as part of their game - just like the new supermarket shopping slogan "Pay more for less!" It really is surprising how much they can reduce the premium when you phone and just tell them you're going to start a comparison on the web - and the beauty of it is if they do give you the bum's rush you almost certainly can find comparative policies for less by shopping around.
     
    Last edited: Jun 9, 2018

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