Insurance companies lowering premiums when challenging them

[J-Man]

Does this grind anyone else's gears?

What i mean is when they send you your renewal through and you ring up to cancel because you've had a cheaper quote, they can miraculously undercut it for you. Is it just me that finds this insulting? I know human nature makes people just go with it because we will naturally want to pay the cheapest possible price but really it's quite insulting to think they'd happily have taken more money from you had you not challenged them. I can see it from the business side being better to get something than nothing, but also from the consumer side. Part of me would prefer they said sorry, thats the best we can do and we've discounted as much as we can as i'd feel that they'd done their best for me.

I think as a society we need to stop falling for tricks like this because it encourages them to use more tactics like this to retain business after trying to squeeze as much money out of you as possible.  If they can do it at the cheaper price anyway - they should offer it in the first place.

Do you guys think that actually its a nice way of getting a cheap price - playing one off against the other? Or are you like me and still cancel on principle?

Moan over.

[tanktop16]

i have had this happen to me,been told they would match my new quote,but ive told them no thanks because this should  have been offered in the first place.

[The Wrinkly Ninja]

It's dog-eat-dog in the insurance world these days. Your renewal notice is no more than an offer to re insure - accept it if you wish, but anyone doing so without checking the market is a fool, TBH. The insurance companies have no loyalty to you any more, sadly , and you owe nothing to them.

Use at least one comparison site, then if you feel you wish to stick with your original company, then give them the opportuniity to offer a new quote - or simply go elsewhere.

I stuck for years with Direct Line, and very good they were too, but suddenly, their premiums became unrealistic  - so I swapped. I'm currently with the Club's insurers and happily so, but will change quite readily if the need arises.

[TonyG]

I had something similar over servicing when the car was still in warranty.  I got a written quote from my local mechanic who did all the work on the Saxo and subsequently on the Xsara.  Main dealer matched the price which halved what he originally wanted.  To be honest I think they did the work at a loss given the flash building and hence overheads.  However they advertised a price match on servicing so I took them at their word.  At first they didn't believe the price I had but backed down when I faxed them a written quote.  I had no qualms doing it.  As a main dealer they where useless and realied on being the main dealer to keep the workshop busy.  Eventually with the change in the rules they lost trade and went bust.  Main dealers charging labour at ?75 per hour and paying mechanics less than ?10 has to be a rip off.  I suspect they are covering a lot of sales/ showroom costs with the servicing charges which I don't think is fair.  Why should the new car buyer be subsidised by existing owners?

[Captain Joe]

they're all blackmailing  . car insurers rank alongside the british justice system and somalians in my list of people who should be napalmed.

[wybd60]

Most Insurance companies are rip-off merchants, only too happy to accept your premium, not too keen to pay out claims. They'll try all the tricks in the book to avoid paying, this applies to all types of insurance, not just auto.

[Captain Joe]

but the main issue is that car insurance is obligatory. i would quite happily go without it, with the money i saved i could probably afford to crash into everything in sight and pay for the damage out of my own pocket.

[Freyja]

At the end of the day, if they don't appear to want your business due to the price, then just go elsewhere. I don't consider it something to get wound up about - you don't owe them anything. I'm one of those evil people who  works in motor insurance (I can't name who), but our existing customers strangely get a better renewal premium in the vast majority of cases rather than any new quotes. I don't pretend to understand it, it is what it is.

I've never stayed with the same company following a renewal, shopping around pays. Also never had a company attempt to lower a premium at renewal if I've had a better quote, though I can imagine it's bloody annoying. Would be nice to know that someone wants to keep my business for not costing them anything in claims, but a computer working out a price doesn't know me or how I drive. Better business sense really to offer your best price first time round, but hey-ho. It varies from company to company generally, based on how they rate the risk, you just go with what's right for you. Not worth getting annoyed about if you're going to save money!

Saved ?300 this year after half an evening shopping round. Actually ended up going with work this year but at least I know what I get for my ?989.

[xsararacer]

Most Insurance companies are rip-off merchants, only too happy to accept your premium, not too keen to pay out claims. They'll try all the tricks in the book to avoid paying, this applies to all types of insurance, not just auto.

^^^^says everything I would have said so not getting started...

[maf91]

£505.... 20 years old fully comp. Just sayin :p

Insurance companies will screw you time n time again. So when they accidentally put £89 in my bank account in December there, I had them on the phone for hours before they decided to tell me to keep it as a goodwill gesture for all my troubles with them. Booya.