Reply to: Car Insurance Churn

[d000hg]

Me too, although not the same companies.

It's a ridiculous ritual. I suppose they rely on some people being too complacent to switch after the first year, especially with auto-renewal arrangements.

But it's so easy, and the amount saved often so large (as in your case), that it's a no brainer for even the thickest and bone laziest.

I note energy suppliers are now not allowed to do the same thing - where they put you on a terrible tariff after an initial fixed-length tariff expires. I wonder if they will go after insurers and banks too. On the one hand it seems deceitful companies do this and it would be nice if they weren't allowed... but on the other hand those who pay over the odds probably subsidise the cost of those of us who do change insurance every year, transfer ISAs, swap credit cards, etc?

[psychocandy]

In my experience, ones like Green Flag etc are crap. Because they use local garages mainly its just too hit and miss for my liking.

Was with RAC for years but then I noticed they were offloading a lot to local garages way too often. Had a bad experience when they sent a local garage to tow my car. Rude man who didnt give a toss. Dodgy van with broken seatbelts.

So moved to AA and they've been pretty good. Pay for the top whack cover and its worth it. If your off to client site and you breakdown you want to at least get there and not be arguing or trying to get van to drop you off at train station etc.

I broke down once on way to clients customer to do an important upgrade. Car was knackered. They let me leave car in services to be collected later, towed it home in my abscence, and then let me continue my journey by train. I was late but got there in the end.

Only issue I had was they were supposed to provide a hire car but none of the local depots had any spare which sort of defeats the object. Not exactly middle of nowhere either - it was the west midlands.....

I did have a go at the AA for that. If your supplier can't supply a car at short notice in an emergency (as is always the case with a breakdown) in one of the more populated areas of the UK then change your supplier. If I was in the middle of nowhere then its different (They tried 4-5 depots of said car hire company in 30 mile radius).

[mudskipper]

I guarantee that when you're sat at the side of the road in the rain you won't care about the money you saved on your breakdown cover.

That is true - the AA do have a good reputation. However, I think my chances of breaking down are pretty small - I do very few miles, and my cheapo cover is provided by call assist which uses local firms, so I think it's probably not too bad.

[psychocandy]

Permie days

[GazCol]

Yep. Had that with them once. Had a right go at them....

Pre-renewal deposit. What a load of bollacks. More like we'll swipe some of your money, make it hassle to get it back, just to convince that you really want to stay with us after all.

Not being funny, but why, as a contractor, are you paying by Direct Debit at 11%?

[vwdan]

I confess I don't really understand how car insurers calculate their premiums and I assume some just give ridiculously high quotes as they don't want business from certain demographics.

No assume about it - it's absolutely this. Especially with comparison sites - it's generally better to price themselves out of the market than refuse a quote.

[TheCyclingProgrammer]

I confess I don't really understand how car insurers calculate their premiums and I assume some just give ridiculously high quotes as they don't want business from certain demographics.

I own a Hyundai so I thought I'd see what kind of insurance quote they'd give me. Bearing in mind the best quotes I've had are in the region of £320 - £450, I've just had a quote for £1900.

[psychocandy]

Not really because none of my previous insurers have charged admin fees for things like change of details, or at least not at the level that esure charge.

There is a max they can charge I believe (and its a fair bit).

I remember M&S insurance charging me it and I was a bit miffed. Then found out M&S insurance is run by Budget which says it all. Surprised M&S put their name to that.

Admiral, on the other hand, said nah its ok we'll do for free.

[TheCyclingProgrammer]

Just had that with the AA who took £150 out my account auto-renewing breakdown cover.

Cancelled it and got a refund - they offered to go down to about £80, but found more comprehensive cover for about £35 on comparison website.

Ah, I must remember to cancel my AA membership in October - my new car still has 4 years left on its manufacturer warranty which includes free RAC cover on the car.

[TheCyclingProgrammer]

Have you considered the reason you now have to pay ridiculous admin charges is everybody driving down premiums by use of price comparison websites?

Not really because none of my previous insurers have charged admin fees for things like change of details, or at least not at the level that esure charge.

[Platypus]

I've been with direct line for maybe 10 years, come renewal I get an online quote and get them to match it. I don't really mind as the people who are too lazy to bother keep my premium down.

Don't they grumble that you can't get the "new customer" discount if you're already a customer?

Crazy that the online system gives lower prices than renewal. Aren't they calculated the same way?

[gingerjedi]

mostly if you get a new quote from your own insurers website it will be cheaper than the renewal quote they send you. you can just ring em up and take the quote from their website if you want.

WHS^

I've been with direct line for maybe 10 years, come renewal I get an online quote and get them to match it. I don't really mind as the people who are too lazy to bother keep my premium down.

[psychocandy]

Of course, Swinton take a pre-renewal deposit automatically, which you have to get refunded if you don't renew

Yep. Had that with them once. Had a right go at them....

Pre-renewal deposit. What a load of bollacks. More like we'll swipe some of your money, make it hassle to get it back, just to convince that you really want to stay with us after all.

[VectraMan]

Just had that with the AA who took £150 out my account auto-renewing breakdown cover.

Cancelled it and got a refund - they offered to go down to about £80, but found more comprehensive cover for about £35 on comparison website.

I guarantee that when you're sat at the side of the road in the rain you won't care about the money you saved on your breakdown cover.

[kevpuk]

Of course, Swinton take a pre-renewal deposit automatically, which you have to get refunded if you don't renew