Customer Loyalty?

[Random Orbital Bob]

Wow. Reading this prompted me to go online and take a look, as my car insurance will be up for renewal in a month. Last year I paid £369.94 to Direct Line with a £275 excess. Looks like I can get the same cover, but with courtesy car and £100 excess for almost exactly half price from Admiral.
What's the deal? Are Admiral rubbish or are Direct Line overpriced?

Did you read my earlier post?

I wasn't joking or exaggerating when I documented these numbers. This is why you're getting literally 50% reductions in premiums. There's nothing wrong with the policy, you're just being treated as a new customer that's all.

Here's the post again:

As a rule now and for the past at least 6 years I always use an insurance search engine for all insurance business, generally moneysupermarket. That goes for buildings and contents, car, boiler. I also do the same with energy suppliers every single time I come off their 12 month tarrif.

The fact of modern insurance is that apart from the anomalies like Direct Line, most insurance business is done online and therefore they're all competing for new customers, that's why existing customers subsidise the 1st year premiums for new customers. They know that enough customers at the end of year 1 will just renew because they cant be fagged to go through the search process again. If you do, you will save a couple to five hundred pounds every year.

My Mother in law was paying Saga £400 per year for buildings and contents, I got it for £99 with a better policy just by using a search provider. The difference really is that stark so take my advice and always always do a fresh search at every single policy renewal. This notion of supporting/showing loyalty to existing customers is pure unadulterated lies. Personally I think its white collar crime, its that blatant and one of the watch dogs or regulators should fine the shisters for taking the mickey. I'm not worried about me, I'm from the internet generation, its the old folk that (particularly Saga) they're absolutely robbing blind.

 

[Mark Hancock]

+1 for what Bob said.

Along with using price comparison sites it's also good to look to see if you can also use a cash back site like Quidco and discount voucher sites. In the early days of quidco I managed to get home and contents insurance for my Dad where he was paid to have the insurance i.e. with discount vouchers and cash back the insurance cost him nothing and he received money. It's very unlikely to get this situation now but it's always worth looking.

Also beware of the "continuous payment" requirement with some policies when you take them out. Make sure you cancel this method of future payments as soon as you have the policy.

 

[John Brown]

"Did you read my earlier post?"
Yes, I did read it.
Now I've read it again.
Please don't bother posting it a third time, but if you do, maybe green would be nice.
I was just adding my experience to the discussion in endorsement of what others have said.

 

[MIGNAL]

Maybe it's just the modern business practices of these larger companies. Obviously loyalty is a one way street these days. If they don't show it to you then don't for one moment think of showing it to them.
As a one man band I wouldn't dream of treating a loyal customer in the same manner that these companies do. I think we've all been a victim of paying far too much just because we can't be bothered switching.