Insurance companies are bonkers

[wedrum]

So the wife had her renewal email and all looked good until I noticed the policy was on the old address.
No biggie as we moved not long ago.

Anyways they re-run the quote and it increased another £360.
We only moved about 0.3 miles away.

She's been with this company for 2 years and not had to make any claims.

So got on comparison sites found a quote for cheaper than she paid last year.
Her current insurer would not match it so told them to cancel it when the policy runs out this month.

 

[grudas]

That's pretty much the normal with insurance. There's no customer loyalty.

 

[adam cool dude]

That's pretty much the normal with insurance. There's no customer loyalty.

There is if you phone them up. Admiral always did me proud till it got to the point my second car became too modified which needed a more specialist policy.

 

[muon]

So the wife had her renewal email and all looked good until I noticed the policy was on the old address.
No biggie as we moved not long ago.

Anyways they re-run the quote and it increased another £360.
We only moved about 0.3 miles away.

She's been with this company for 2 years and not had to make any claims.

So got on comparison sites found a quote for cheaper than she paid last year.
Her current insurer would not match it so told them to cancel it when the policy runs out this month.

Why do you think 0.3 miles doesn't mean much?

Not all insurers have the same view of all postcodes. Your current insurer obviously for various reasons felt you become a higher risk at the new address.

If all insurance companies though the same thing, prices would be very similar between all companies.

 

[Raymond Lin]

There is if you phone them up. Admiral always did me proud till it got to the point my second car became too modified which needed a more specialist policy.

Zurich gave me a quote of £600 ish for my Volvo, I had been with them for 2 years. I told them I could get it for £350 cheapest (a company I never heard of) or someone more well known like Tesco and Churchill for £380.

I even told them I would stay if they could get close and not necessarily match the quote.

After 20 mins on the phone, on hold to managers, their best offer was their £600 renewal quote, not a penny off but give me £50 Sainsbury's vouchers.

Needless to say I got my £200 savings elsewhere.

 

[muon]

Zurich gave me a quote of £600 ish for my Volvo, I had been with them for 2 years. I told them I could get it for £350 cheapest (a company I never heard of) or someone more well known like Tesco and Churchill for £380.

I even told them I would stay if they could get close and not necessarily match the quote.

After 20 mins on the phone, on hold to managers, their best offer was their £600 renewal quote, not a penny off but give me £50 Sainsbury's vouchers.

Needless to say I got my £200 savings elsewhere.

If you were Zurich and though that this person will on average cost me £500, why would you ever match a £380 price?

Ageas which owns Tesco Insurance is barely making money on £2bn revenue (£21m).

http://www.insuranceage.co.uk/insurance-age/news/2447379/profit-fall-for-ageas

Of course Tesco could be correct in that you actually will on average claim say £300.

Then it is just a case of who is better at guessing the true cost.

 

[Raymond Lin]

If you were Zurich and though that this person will on average cost me £500, why would you ever match a £380 price?

You missed the bit where I said I would accept a quote higher than the £380 to save the hassle switching? I wanted to hear what their best offer was.

Boo hoo, insurance companies not making big enough profits...

 

[Raymond Lin]

DP

 

[muon]

You missed the bit where I said I would accept a quote higher than the £380 to save the hassle switching? I wanted to hear what their best offer was.

Boo hoo, insurance companies not making big enough profits...

Ageas which owns a majority share of Tesco insurance for every £1 revenue made 0.2p profit.

Want to invest in this company?

Of course anecdotal examples of individual prices doesn't mean much, but it provides a reason why Zurich may not necessarily price match.

 

[Raymond Lin]

Ageas which owns a majority share of Tesco insurance for every £1 revenue made 0.2p profit.

Want to invest in this company?

And???

Are you suggesting I should pay more because of their bottom line?

 

[muon]

And???

Are you suggesting I should pay more because of their bottom line?

I am saying they can refuse to offer the price you want. Very much in the same way overclockers won't sell you something at a loss.

And yes, like anything else it is to do with their bottom line. Just like you care about your wallet.

If I owned Zurich, I would tell them to do exactly what they have done. Not sell at what they believe to be a loss or too low profit.

 

[Raymond Lin]

I am saying they can refuse to offer the price you want. Very much in the same way overclockers won't sell you something at a loss.

And yes, like anything else it is to do with their bottom line. Just like you care about your wallet.

If I owned Ageas, I would tell them to do exactly what they have done. Not sell at what they believe to be a loss or too low profit.

And it is my right to refuse their offer.

My point, again, wasn't the expectation of them matching, my disappointment was there wasn't a penny lower, there basically was no counter offer. Not even £10 lower but instead offer vouchers?

 

[muon]

And it is my right to refuse their offer.

My point, again, wasn't the expectation of them matching, my disappointment was there wasn't a penny lower, there basically was no counter offer. Not even £10 lower but instead offer vouchers?

How many sellers of goods and services let consumers individually negotiate discounts? Why are you even expecting that?

You tried it and they said no. Move on.

 

[Raymond Lin]

How many sellers of goods and services let consumers individually negotiate discounts? Why are you even expecting that?

You tried it and they said no. Move on.

I have moved on, the proof in the pudding was when I got my savings elsewhere. I got my happy ending.... I was merely retelling a story to the OP before you set us down this rabbit hole.

As for the negotiator part? Doesn't everyone negotiate their car insurance? Are you one of those who takes the renewal offer every year?

Good for you.

 

[muon]

I have moved on... I was just retelling a story to the OP before you set us down this rabbit hole.

As for the negotiator part? Doesn't everyone negotiate their car insurance? Are you one of those who takes the renewal offer every year?

Good for you.

Who says their systems even allow customer services to alter the price set by underwritiers?

Secondly a complaint I've seen often leveled is an insurance company suddenly dropping prices when phoning up.

Surely Zurich should get credit here for sticking by their price as the best one they can give.

 

[Raymond Lin]

Who says their systems even allow them to alter the price?

Secondly a complaint I've seen often leveled is an insurance company suddenly dropping prices when phoning up.

Surely Zurich should get credit here for sticking by their price as the best one they can give.

Rabbit hole!

What's wrong with you?

 

[muon]

Rabbit hole!

What's wrong with you?

Zurich didn't roll over when you showed them a competing offer.

You wanted to know what their best offer was and they gave it. You mentioned the fact it wasn't even just £10 lower bugged you.

 

[Raymond Lin]

Zurich didn't roll over when you showed them a competing offer.

You wanted to know what their best offer was and they gave it. You mentioned the fact it wasn't even just £10 lower bugged you.

Thanks for pointing out the obvious and retelling my story.

 

[asim18]

Why do you think 0.3 miles doesn't mean much?

Not all insurers have the same view of all postcodes. Your current insurer obviously for various reasons felt you become a higher risk at the new address.

If all insurance companies though the same thing, prices would be very similar between all companies.

He thinks 0.3 miles doesn't mean much because in reality, 0.3 miles doesn't actually mean anything at all! And you said it yourself "felt you become a higher risk" so you understand there is no actual, nor correct, nor properly calculated or conducted risk assessment going on here otherwise both results would be exactly the same.

What's happening here is they are using random statistics to inflate prices beyond actual risk, some guy 10 years ago maybe got hit there and they're using it to inflate the prices, no actual assessment has occurred. They're using an un-correlative statistic, and then they give the illusion that this random number has somehow magically, and correctly, extrapolated the actual risk. The road has not been studied to find what is actual risk! (in fact a lot of roads are designed to increase risk!! but that's a discussion for another thread).

The results aren't different because there is actually a greater risk lol, The results are different because one of the companies are taking the chance to milk you. And the reason it is always the company you are currently with is because a lot of people don't bother and simply let their renewal auto-renew. This is a classic tactic of any service provider, not just insurance!

How many sellers of goods and services let consumers individually negotiate discounts? Why are you even expecting that?

You tried it and they said no. Move on.

Car insurance? people negotiate car insurance just like the op and Raymond are trying to do

People negotiate individual deals with Sky and Virgin all the time, they provide a service don't they? And it's EXACTLY the same principle with them. New customers always get the best deals, the old ones have to pay more than new customers for exactly the same services.

 

[Raymond Lin]

I haggle quite often, I certainly do it in Hong Kong (that culture is almost expected), even in a shopping mall. I have even haggled I like via live chat. I haggled with Sky and got it £19 a year with £50 credit, instead of the £27 they gave me. I haggled £120 off my glasses. You don't ask, you don't get.

My friend once successfully haggled in a Disney Store, I could not believe it.