House Insurance auto renewal con

stormcrow

stormcrow

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Has anyone else found that their house insurance is a rip off when it comes to automatic renewal? I have just had my renewal letter and the price for automatic renewal of my current policy is 24% higher than what I paid last year.
I have now been on the same companies website and made a new quote for a policy the same specification as my current policy and it is actually the same as what I paid last year. What a great way to reward loyalty from customers charge them 24% more!!
I wonder how many people fall into this con trick of allowing their house insurance to be automatically renewed without checking to see if they can get it cheaper elsewhere or even from the same company.
 
If someone allows it or anything else) to be renewed without bothering to check the numbers, they're a bit daft though imo.
 
viv1969 said:
If someone allows it or anything else) to be renewed without bothering to check the numbers, they're a bit daft though imo.
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I would agree, over the years I have been doing this I've saved thousands by not auto renewing I think some will think it is only a small saving and can't be bothered to sort out another policy. It took me about 10 mins this morning to get a new one for me.
 
they do it all the time, ive just saved the mother in law over £300 on car insurance by just hunting around, she's 56 70% NCB drives a little clio and they wanted £465.
Now she is paying £160

All insurance companies rely on you being too lazy to check, i could understand this in the days of phoning a hundred insurers for a quote, but with today's convenience as previously said there is no excuse...
 
So it's not really a con (as your title alludes to), but more a reward for being lazy.
 
In previous years I've found this to be true, I normally do a price comparison online then phone my current insurer and they drop their price. One time they actually said to me, I'm sorry we can't match that price, the most I can take off is 40%! Which really means " we were tying to rip you off by charging you 67% more than the policy is worth!"

However this year my renewal for Tesco home insurance was a good few quid lower than I could get from any other insurer so I just let it automatically renew - definitely the first time I've done that.
 
Isn't it that the original quote/fee was discounted to gain new business?
 
Totally agree. Auto renewal for same policy massively higher than with the same company via a meerkat. Broker told me they always got the best deal but just offered something uncompetitive with same insurer without even bothering to have a cursory glance at what others were offering. I found a better deal with 5 minutes of effort.

They also claimed the same with car insurance. I spanked their best effort in 5 minutes too. They couldn't touch the price I found via the meerkat either. I've given up with normal brokers. They can't do better than me. I'd expect them to find the better deals.

This is why customer loyalty has disappeared. You are actively punished for remaining with the same company so it's best to switch.
 
I think I've been pretty lucky.......

I've been with Directline car insurance for over 10 years, this year was the first time my premium went up. Meerkat could get me about £100 cheaper but I was willing to pay a little more to stay with Directline as they've been excellent in the past when I needed their help or to make a claim.

After a little negotiating with them I paid slightly less than the last year's premium which was only £30-40 more than the cheapest Meekat quote with a company I'd never heard of.

The wife's renewal with them (multi-car) came in £3 dearer than last year and my home insurance was about the same.

Can't really grumble with that :)
 
jackthekipper said:
Insurance is legalised theft, nothing more nothing less.
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Whilst I think insurance companies do take the P......... I wouldn't exactly call it "legalised theft".......

If you smashed up your £10K car would you have £10K to go out and replace it?
 
Swinton phoned me last week to say it was renewal time for my buildings insurance and to offer me the same cover with a different company for £10 less per month.


Steve.
 
My car insurance came back at 3650 this year on their auto renewal. I drive a people carrier and have 24 year no claims .. I had time so went onto a price comparision site and got it down to £370. I would shop around in future.
 
Samphire said:
My car insurance came back at 3650 this year on their auto renewal. I drive a people carrier and have 24 year no claims .. I had time so went onto a price comparision site and got it down to £370. I would shop around in future.
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impressive! :clap:

my home insurance is up for renewal on March 1st... got my renewal figure through a couple of weeks back at £1220!!, that's from paying approx. £750 last year... and they have also (very kindly) implemented a £500 excess on water damage... that'll be because the bedroom ceiling caved in after a leak in the water tank.. causing approx. £1k damage, so obviously they don't want that to happen again otherwise they'd be fools wouldn't they. I'm so excited typing this because i want to get straight on the phone to them to renew. Direct Line.. you're the best! :clap:
 
The new excess on water damage is probably an across the board change. I had one imposed on me and I've never claimed for any water leaks.

The new insurance company I went with also mentioned a differential excess for water damage.
 
Samphire said:
My car insurance came back at 3650 this year on their auto renewal. I drive a people carrier and have 24 year no claims .. I had time so went onto a price comparision site and got it down to £370. I would shop around in future.
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Some insurance companies only want certain groups of people, so they'll price out anyone who isn't in that group, I'm guessing that's what's happened to you. My dad got a quote of £50,000 from one company, actually amount he paid was about £170. I wonder if anyone would actually pay that £50,000 :wacky: :LOL:
 
Go through quidco to to get more cash back
My wife just done a qoute for her car insurance for £200 wonder what the renewal will say
 
viv1969 said:
Oxymoron alert. :thinking:
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To be fair Ruth I actually agree, and this is coming from someone with a finance/legal background.
I found out today, that unemployed people (if they declare themselves as unemployed) pay higher car insurance than those in employment - why?
How does employment status reflect on a person's driving ability?
 
andy700 said:
To be fair Ruth I actually agree, and this is coming from someone with a finance/legal background.
I found out today, that unemployed people (if they declare themselves as unemployed) pay higher car insurance than those in employment - why?
How does employment status reflect on a person's driving ability?
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I have no idea Andy....But there is no such thing as legalised theft.
They tell you what they will charge you, and you either pay or you do not.
A choice is involved.
 
ok.. basically, the general business model for many large insurers (with shareholders) is to

a) sell cheap in the first year* (at a "loss")
b) hope you will renew and then get screwed...
c) this cheap insurance will be bare bones so therfore
d) legal cover £20-30, protect the NCB.. circa £50......... breakdown - basic = £40 or so...
 
Lynton said:
ok.. basically, the general business model for many large insurers (with shareholders) is to

a) sell cheap in the first year* (at a "loss")
b) hope you will renew and then get screwed...
c) this cheap insurance will be bare bones so therfore
d) legal cover £20-30, protect the NCB.. circa £50......... breakdown - basic = £40 or so...
Click to expand...

Point a) is what I said wayoop the thread!
 
Samphire said:
My car insurance came back at 3650 this year on their auto renewal. I drive a people carrier and have 24 year no claims .. I had time so went onto a price comparision site and got it down to £370. I would shop around in future.
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My auto renew was under £300 this year, that's the lowest I've paid for car insurance since about 13 years ago (and back then I had an old Volvo 340). I've had the same car the last eight years and it gets cheaper year on year, despite me having been at over 5 years no claims, no accidents etc. since I bought it in 2004.

I don't drive a people carrier though, mine has only two seats so I must be lower risk :naughty:
 
Surely it's obvious to everyone with more than one brain cell firing at once?
Check prices for car insurance, home insurance, contents insurance and energy prices EVERY single year!


We live in a society where the Raison d'être for these companies and corporations is to maximise profits for the shareholders, nothing else. The customers don't matter at all.

I have as much customer loyalty to any insurance company as they do to me... none whatsoever!
 
Not just insurance though. AA/RAC membership is the same, we usually alternate the two with green flag. Another benefit of starting with a new/different company is being able to claim cash back via quid co etc - usually can not claim on renewals.
 
Lynton said:
ok.. basically, the general business model for many large insurers (with shareholders) is to

a) sell cheap in the first year* (at a "loss")
b) hope you will renew and then get screwed...
c) this cheap insurance will be bare bones so therfore
d) legal cover £20-30, protect the NCB.. circa £50......... breakdown - basic = £40 or so...
Click to expand...

in my case, i've been with Direct Line for about 7 years and this year they've decided to hit me a ballbreaking increase from £900ish to £1220?!?
 
leftcurl said:
in my case, i've been with Direct Line for about 7 years and this year they've decided to hit me a ballbreaking increase from £900ish to £1220?!?
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No change in circumstances, claims etc?
 
onomatopoeia said:
No change in circumstances, claims etc?
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no circumstance change. 1 claim for water damage (approx. £1000) last year.. to which they have implemented a £500 excess as well :wacky:
 
leftcurl said:
1 claim
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There you are then. An unrecovered claim means the base premium goes up, irrespective of any NCD protection.

As for the excess, that's how it works. Make a claim, pay the excess, unless the insurer can recover from a third party. I expect you can get a policy with a lower excess, but chances are the premium will be higher.

Shop around.
 
I always shop around when insurance is due - I hate the auto-renewal, although I have seen a few places that give you the option of not auto-renewal. Hate the way you have to cancel rather than you phone to say you want to continue
 
Samphire said:
My car insurance came back at 3650 this year on their auto renewal. I drive a people carrier and have 24 year no claims .. I had time so went onto a price comparision site and got it down to £370. I would shop around in future.
Click to expand...

Whilst you can usually get a cheaper premium on a comparison website, the cover offered usually comes with much higher excess charges.


Steve.
 
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