Motor
insurance renewals
Fellow
members are noticing their motor insurance renewal premiums are rising and in
most cases by a substantial amount. Why is this happening, who are the targets
for insurers and what can policyholders do to get an insurance renewal at a lower
rate. See our NEWS items on this topic alongside.
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Back to V8 website homepage | Insurers
braced for "loyalty penalty" crackdown
Insurers braced for
"loyalty penalty" crackdown was the headline for an article in the Financial
Times today which reported the "industry's pricing practices face reform
while the cost of car and home claims has risen". The article notes "the
way insurers decide what to charge loyal customers for home and motor cover is
set for a shake-up this year as regulators complete an investigation into the
industry's pricing practices". 190111
More
Negotiating
an acceptable insurance renewal premium
One member has been in touch
to say "I received my insurance renewal and once again it showed an increase
in the renewal premium of 15%, far in excess of my annual salary increase at work,
so I took my usual approach with the insurer. 190102
More
Claims
loyal customers are losing on average £877 a year prompt action by the consumer
watchdog
Sadly loyalty counts for very little these days or worse
- some insurers and utility providers regard loyal customers as fodder ripe for
a rip off. The excess "loyal stuffees" pay up on renewals goes to subsidise
the competitive quotes the providers offer in the market to those shopping around.
But haggling is not a natural activity for many but sadly one most will have to
accept now if they do not simply roll over on renewal and pay up as a "loyal
stuffee".
181219
More
"Loyal
stuffees" continue to be ripped off by insurers & utility companies
Customers
who stay loyal with the same insurer or utility provider are increasingly finding
their renewal premium or charge has big increases. Why? - well customers who stay
with the same provider and don’t haggle for a better deal are being hit with
loyalty penalties. For broadband customers the Which? magazine (UK's leading consumer
group) reports renewal "penalties" of up to £220 a year on average.
In effect loyal customers are seen as less likely to shop around as they believe
the provider will value loyalty and reward their loyal customers with good renewal
charges. Sadly the providers simply regard them as "loyal stuffees"
- yes customers on whom they can load their renewal charges and reap a bumper
harvest from the inflated renewal charges. 181208
More
Insurer's
policy . . . is to milk customer loyalty
In
a whole page article in the Sunday Times on 14th January 2018, Stephen Bleach
(Travel Editor) describes how his insurer sent him a renewal premium notice 2½
times as much for almost identical cover he obtained by seeking a quote from the
same insurer as a new customer. More
180114
High
increases with motor insurance renewals seen from members' feedback
If
you have been following our NEWS items on the high increases with motor insurance
renewals the chart alongside may interest you. So far we have had only four members
provide details of the renewal experience with their daily car but what it shows
is interesting. More
180107
News of a modest renewal
premium
A member reports "I had a renewal this week from my insurer
for my BMW 28i auto Z4 which increased my premium by around 10% to £597."
He called them and by reducing the value, annual mileage and accepting a higher
excess, the renewal premium was then 23% lower than the renewal quote! More
180105
How did a fellow member
respond to a premium increase for an RV8?
Following our earlier NEWS items
on high motor insurance renewal premiums, a fellow member has been in touch saying
"shortly after seeing the news item on insurance renewals on the V8 Website,
I had the renewal for the RV8 arrive today showing an increase from £198
to £233 for next year." He explained how he successfully negotiated
a lower premium. More 171228
Time
to haggle on motor insurance renewals
As a sequel to the NEWS item released
yesterday - Loyalty rewarded - sadly the opposite can be true - the comments made
by the chief executive of Eon before MPs on the business select committee underline
the problem in an extraordinary way. More
171220
Loyalty rewarded - sadly
the opposite can be true
The consumer magazine Which? has a lead feature
in its January 2018 issue on "why loyalty doesn't pay" noting how providers
of motor insurance and other essential services are quietly taking advantage of
their most loyal customers (often older customers) whilst offering new customers
attractive deals. Sadly you have to haggle these days to get a fair deal rather
than meekly accept a high renewal premium as a passive "loyal stuffee".
More 171219
Have
you seen some large insurance renewal premium increases for your daily car?
Recently
a V8 Register member received the annual renewal notice from his broker for the
motor insurance cover for his daily car and was astonished to see the premium
had increased from £352.61 to £574.02 - an increase of £194.41
or 55%. As nothing had changed in terms of the risk or his driving record, naturally
he could not understand why there was such a massive increase so he queried the
renewal premium with his broker. This NEWS item sets out the reply he received
and also has links to other information on premium rises. More
170930 |
