Car insurance renewal tip

[nilagin]

Just been watching Martin Lewis on itv. He said if your car insurance renewal is coming up, getting a new customer quote should be done at around 21 days before your renewal date. After that quotes will rise due to insurers finding most people who search for quotes at the last minute are more likely to make a claim.

 

[rick448]

Just been watching Martin Lewis on itv. He said if your car insurance renewal is coming up, getting a new customer quote should be done at around 21 days before your renewal date. After that quotes will rise due to insurers finding most people who search for quotes at the last minute are more likely to make a claim.

That's interesting, I'd like to see the statistics to back that up. Id say it's more likely that the closer you are to your renewal the less chance you have to shop around, so they can get a higher premium out of you.

Either way, I'll try this when my renewal is due next time.

 

[JonathanRyan]

After that quotes will rise due to insurers finding most people who search for quotes at the last minute are more likely to make a claim.

Id say it's more likely that the closer you are to your renewal the less chance you have to shop around, so they can get a higher premium out of you.

It doesn't really matter why it's true - and insurers may not know why they charge in this way - but 21 days is generally reckoned to be the sweet spot. Also, prices tend to rise on a monthly basis so you want to be renewing on the 31st rather than the 1st.

Either way, despite the complex maths involved, insurance premiums for the end user are essentially random.

 

[Cobra]

Either way, despite the complex maths involved, insurance premiums for the end user are essentially random.

I've noticed that, by returning a few times in a couple of weeks, for a quote from the meerkat et al.
Same with squeeze-me-jet the more you look before you decide the higher the price.
I found that clearing cookies or using someone else's computer to book tends to negate that

 

[JohnC6]

I've noticed that, by returning a few times in a couple of weeks, for a quote from the meerkat et al.
Same with squeeze-me-jet the more you look before you decide the higher the price.
I found that clearing cookies or using someone else's computer to book tends to negate that

There was criticism of the Travel/Airline industry doing exactly this..tracking your website visits to them and using another computer and /or clearing cookies was advised. I clear my cookies every couple of days. I did a Google.

This interesting Guardian article relates to the alleged practice. Paragraph4..(the neighbourhood you live in) just shows where personal data collection/use is going. https://www.theguardian.com/comment...ur-browsing-history-could-mean-rip-off-prices

 

[Cobra]

I clear my cookies every couple of days.

Me too

Paragraph4..(the neighbourhood you live in)

That doesn't surprise me in the slightest TBH

 

[Deleted sulking member 63079]

I used to build the systems that calculated insurance quotes, they're actually very sophisticated and take into account all sorts of data, so far from random.

So this doesn't surprise me at all. Even the time of day can impact it.

 

[JonathanRyan]

I used to build the systems that calculated insurance quotes, they're actually very sophisticated and take into account all sorts of data, so far from random.

Yeah. Me too. Obviously they are carefully calculated. But there are so many hidden variables involved that are used differently by each company that from an end user's perspective it works out to be random.

A 19 year old with a conviction for driving without insurance and 3 claims is always going to cost "a lot" but the actual price will vary wildly from company to company and day to day.

 

[Cobra]

LOL talk about coincidence, just dropped into my news feed

 

[mj4456]

I found that if one the comparison sites offered me a better price than my renewal I could call the company and ask if they would match the price, if not I just started again with a new policy, I will though ensure that I now do the comparisons in plenty of time, once I find my paperwork to get a renewal date.

 

[Garry Edwards]

I've just had my renewal offer through from the broker that I've been with for a few years. 8% reduction on last year, which I thought was good until I put my details into Direct Line, who came back with a quote that was 36.4% lower for exactly the same cover, so I went with them.

What I found slightly annoying is the statement by my "old" insurers that they would beat any quote. I didn't bother, if they want my business then all that they had to do was to offer me the best price, nobody should get a second chance in business.

 

[ecoleman]

I've just had my renewal offer through from the broker that I've been with for a few years. 8% reduction on last year, which I thought was good until I put my details into Direct Line, who came back with a quote that was 36.4% lower for exactly the same cover, so I went with them.

What I found slightly annoying is the statement by my "old" insurers that they would beat any quote. I didn't bother, if they want my business then all that they had to do was to offer me the best price, nobody should get a second chance in business.

Not to worry, direct line won’t waste any time upping your premiums next year.

 

[MatBin]

I was quoted 25% less by going through a comparison site than my old "broker" (m and s,), each quote was the same end insurance company offering exactly the same cover, so I went direct.

 

[Nikon Ken]

Not to worry, direct line won’t waste any time upping your premiums next year.

Too right.

A few years back I transferred to Direct Line as they were significantly cheaper. At renewal they applied a 40% increase despite no change to the risk. I asked them to justify the increase. They replied that the wouldn't as it was commercially sensitive!

I am now with NFU who are competitive but, being a mutual company, reward loyalty by giving a discount at renewal.

 

[Garry Edwards]

Too right.

A few years back I transferred to Direct Line as they were significantly cheaper. At renewal they applied a 40% increase despite no change to the risk. I asked them to justify the increase. They replied that the wouldn't as it was commercially sensitive!

I am now with NFU who are competitive but, being a mutual company, reward loyalty by giving a discount at renewal.

Well, sadly loyalty - in both directions - is now pretty much a thing of the past. Consumers go for the cheapest and suppliers go for market share and they then increase their renewal prices and exploit customer inertia.
Come renewal time next year I will simply join the club and shop around. In the past, many insurance companies were dishonest and tried very hard to avoid paying out claims and this was a good reason to deal only with the best names but this has now changed and the risk of being caught out by a dodgy firm is tiny, so we now just have to play their game and go for the cheapest on the day.

 

[Deleted sulking member 63079]

Well, sadly loyalty - in both directions - is now pretty much a thing of the past. Consumers go for the cheapest and suppliers go for market share and they then increase their renewal prices and exploit customer inertia.
Come renewal time next year I will simply join the club and shop around. In the past, many insurance companies were dishonest and tried very hard to avoid paying out claims and this was a good reason to deal only with the best names but this has now changed and the risk of being caught out by a dodgy firm is tiny, so we now just have to play their game and go for the cheapest on the day.

I always look on the Defaqto star ratings and go with the cheapest offer that's 5 star.

 

[foggy4ever]

My daily is modified so I use a specialist broker, my premium has stayed pretty much the same for the last few years at around £395. I bought an MX5 last June as a second fun car, I knocked 3k off of the yearly mileage on my Civic and saved around £60 and the best quote from the comparison sites was under £200 from Lancaster as they classed it as a classic....a 2008.

 

[Mozthecat]

I had a communication a couple of weeks back from my car insurance company advising me that the renewal paperwork had been legally deficient, because it hadn’t included confirmation of the prior years premium and they included the details here.

It was for a renewal two years prior on a policy that had been obviously been and gone so bugger all use to me....

 

[hashcake]

I'm not sure who owns them but I think confused are owned by Hastings and another insurance company ownes go compare.
The last few years Hastings has offered me the best deals via both of those comparison sites and for the last 2 years they've matched any cheaper quotes that I have gotten from othe companies.
Direct line just make me fall on the floor laughing with their expensive quotes.

 

[Byker28i]

I've noticed that, by returning a few times in a couple of weeks, for a quote from the meerkat et al.
Same with squeeze-me-jet the more you look before you decide the higher the price.
I found that clearing cookies or using someone else's computer to book tends to negate that

Use the private browser (it's not just for porn) or try a browser like Bravo that blocks the trackers

 

[Byker28i]

My daily is modified so I use a specialist broker, my premium has stayed pretty much the same for the last few years at around £395. I bought an MX5 last June as a second fun car, I knocked 3k off of the yearly mileage on my Civic and saved around £60 and the best quote from the comparison sites was under £200 from Lancaster as they classed it as a classic....a 2008.

under £300 for both Mazda's, unlimited mileage.
The TVR is with a specialist because I needed a guarenteed value after all the work I put into it.

 

[Kell]

We normally go online to our existing insurer and get a quote as a new customer. This has always been cheaper than the ridiculous renewals they send us.

We then ask them to match it and they always have.

Then two years ago, despite making no claims, having no traffic offences or speeding tickets, didn't move and didn't suddenly start keeping our cars on the road, the renewal price just doubled.

The insurers do it because of consumer apathy, many people get their renewal and just pay it because they leave it too late or simply can't be arsed to shop around.

It would be amazing if they actually rewarded loyalty instead of penalising it.

Also, when I got my first car at 18, I was told insurance would be cheaper when I was 21. And then 25. And then 30. etc etc

Never did though.

 

[scott199]

Use the private browser (it's not just for porn)

really ??? well ive learnt something today

 

[Byker28i]

really ??? well ive learnt something today

Right click, open in private window or use the menu open in private window. Handy for those news sites that give you limited number of access

I run brave browser for one forum that decided to invest heavily in adverts, so much slow it made it unusable in firefox etc.
Three weeks on one forum

 

[Nod]

under £300 for both Mazda's, unlimited mileage.
The TVR is with a specialist because I needed a guarenteed value after all the work I put into it.

Both Mazdas or each Mazda? IIRC, our 3 car policy is just over £500 - XF, MX5 and Leaf. All unlimited miles, parked anywhere (and fully comp!)

 

[sphexx]

Reviving an old thread.

Car insurance firms use loopholes to keep costs high for loyal customers

It is banned from charging more for renewals than new deals, but the industry still has some tricks up its sleeve

www.theguardian.com

eg (other examples in the article:

This is jargon for what method you use to apply for a quote. A channel can be a call centre, walk-in premises, the insurer’s website or a price comparison site. Insurers only have to ensure that a renewal premium matches that quoted for a new customer if they apply for a like-for-like policy via the same channel the existing customer used.

If the renewing customer signed up via a call centre or the insurer’s website, their premium is still likely to cost more than the same policy sold via a comparison site. Firms are allowed to offer different rates to customers depending on which of the many comparison sites they use. This means that a consumer who took out car insurance via Moneysupermarket three years ago can be charged more to renew than a new customer buying the same policy on Confused.com. To ensure a renewal quote is fair, you would have to remember how you originally came by the policy and check the prices for new customers on the same channel.

Tricky or what!

 

[Cobra]

Tricky or what!

Tricky indeed
I recently posted that my renewal with the same company was up 50% this year.
and it seems it was on auto renew, which I told them to take off from the outset.

Comparing the furry little animals, saved me that 50% increase.

 

[trevormc]

My insurance is due Wednesday saved £110 going through comparison sites, rang my original company but they could not get anywhere near my new quote, so I'm with another company now. This was all done over 2 weeks ago.

Trevor

 

[Cobra]

but they could not get anywhere near my new quote,

I sometimes wonder if they can, but won't, for what ever reason.

 

[JonathanRyan]

Wait, is this news? I assumed everybody knew about channels.

It's a bit like Currys charging different prices for a telly - one if you buy online and a higher one if you go into a store. Partly because running stores is really quite expensive, partly becasue if they didn't cut prices online they would lose out to the firms that do and partly because, well they can.

This means that a consumer who took out car insurance via Moneysupermarket three years ago can be charged more to renew than a new customer buying the same policy on Confused.com.

Or, you know, less. I don't have the figures (and couldn't share them if I did) but the amount that the comparison websites take off the insurance firms is probably more than you think. Somebody has to pay for all those lovely stuffed toys in landfill.

 

[Cobra]

but the amount that the comparison websites take off the insurance firms is probably more than you think.

I'm sure they don't do it out of the goodness of their hearts,
But as I saved £80 this year, I don't care.

Somebody has to pay for all those lovely stuffed toys in landfill.

I think they stopped that sometime ago in favour of 2 for 1 meals or cinema tickets.

 

[JonathanRyan]

I think they stopped that sometime ago in favour of 2 for 1 meals or cinema tickets.

Shows how little attention I pay to their very expensive adverts

BTW I reckon the price comparison sites will be out of business in about 3 years unless they diversify. But I could be wrong - I know roughly how much we used to pay them for customer data. That's their real business.

 

[Cobra]

I know roughly how much we used to pay them for customer data.

Oh there is no doubt in my mind, that its also profitable for farming customer details,
but I can't see them going out of business anytime soon.
Its far easier to do a few clicks of the mouse, rather than talk to a real person, being put on hold, and listening to that dreadful music,
while they transfer you to "the right person" ( usually the other side of the planet)

 

[JonathanRyan]

Oh there is no doubt in my mind, that its also profitable for farming customer details,
but I can't see them going out of business anytime soon.
Its far easier to do a few clicks of the mouse, rather than talk to a real person, being put on hold, and listening to that dreadful music,
while they transfer you to "the right person" ( usually the other side of the planet)

Maybe so. I was thinking of the impact of "market study" which are the regs that say you have to charge new business and renewals the same. It's possible that will massively cut down churn and churn is where the meerkats make their money. I mean, Direct Line seem to be doing alright. They have a pretty decent website.

 

[Deleted member 95743]

Renewal with Direct Line was £230. New business with the AA was £180. New business with the AA through compare the meerkat £163.

 

[Cobra]

which are the regs that say you have to charge new business and renewals the same.

I guess by using the meerkats, there is no way of knowing that, unless "my" current insurer came up on the web search.
It happened only once some years ago, I don't remember the details now, but when asking why it was so much cheaper on the web site,
than my posted renewal quote, the response was, it's a web only "special"

 

[foggy4ever]

I'm with Lancaster for the mx5, second car with limited mileage. Just renewed as it was even cheaper than last year.