Car insurance renewal quotes - why do they overprice so much?

Goldstone1976

We Got Calde in!!

Helpful Moderator

NSC Patron

Apr 30, 2013

13,783

Herts

• Apr 22, 2016

• #1

Genuine question: why does every(?) insurer overprice on renewal so much? Case in point:renewal quote received £554; Meerkat & opera site: £358 & £362.

Every bloody year.

EDIT: Oh, and the renewal quote had a voluntary excess of £250; the new ones have zero. Otherwise identical details.

I get that they're hoping that people won't shop around, but the price differential is staggering.

 

Last edited: Apr 22, 2016

dazzer6666

Well-known member

NSC Patron

Mar 27, 2013

52,385

Burgess Hill

• Apr 22, 2016

• #2

Yup, reliant on inertia.....

Sent from my D5803 using Tapatalk

 

S

Sussex Nomad

Well-known member

Aug 26, 2010

18,185

EP

• Apr 22, 2016

• #3

Got quoted last year by my then current insurers for the upgrade in car and it was something like £1200, looked at a few others and Aviva were £480 for exactly the same product... guess what.

 

Official Old Man

Uckfield Seagull

Aug 27, 2011

8,542

Brighton

• Apr 22, 2016

• #4

Saw a home renewal quote at my Mums house and said I could get it down for her. "No that's OK" she said "I like to stay with people I know". One quick internet quote got it from over £300 to under £100 with the same company.
I know for a fact that my Brother-in-law, who is single and has a few quid, just auto renews everything.

 

H

Hastings gull

Well-known member

Nov 23, 2013

4,635

• Apr 22, 2016

• #5

Goldstone1976 said:

Genuine question: why does every(?) insurer overprice on renewal so much? Case in point:renewal quote received £554; Meerkat & opera site: £358 & £362.

Every bloody year.

EDIT: Oh, and the renewal quote had a voluntary excess of £250; the new ones have zero. Otherwise identical details.

I get that they're hoping that people won't shop around, but the price differential is staggering.

Click to expand...

When I renewed last year, they wanted 33% more. I said that I was prepared to pay 5% more, and offered them the business. The chap said that the price is what the computer said and he could not budge. When I questioned him as to the stupidity of refusing business, reluctantly he agreed. Obviously, they must gain from low prices for newcomers and those not bothered about shopping around. It just leaves a bitter taste when I was trying to stay with them. I am sure that they all must be guilty of this??

 

WATFORD zero

Well-known member

NSC Patron

Jul 10, 2003

25,796

• Apr 22, 2016

• #6

Just a simple numbers game. Even a small proportion of auto renewals will justify the price hike. I've had to take all insurances etc off my parents as they always 'liked to stay with who they knew'

 

Westdene Seagull

aka Cap'n Carl Firecrotch

NSC Patron

Oct 27, 2003

21,003

The arse end of Hangleton

• Apr 22, 2016

• #7

For the first time EVER my auto renewal quote was the best I could actually get. I suspect my record has been marked as every year I've rung them up to get a better price and succeeded.

 

GOM

living vicariously

Aug 8, 2005

3,225

Leeds - but not the dirty bit

• Apr 22, 2016

• #8

My wife's car insurance is with Esure and for 2 renewals in a row we could not beat the renewal price on any comparison site or the direct one's. This has left us totally confused, there must be something wrong in the world.

 

Alex Alex Dawson oo! oo!

Primary data is fact

Jun 25, 2007

6,107

Just on the wrong side of the West Sussex/Surrey b

• Apr 22, 2016

• #9

Westdene Seagull said:

For the first time EVER my auto renewal quote was the best I could actually get. I suspect my record has been marked as every year I've rung them up to get a better price and succeeded.

Click to expand...

I've always rung up and this has just happened with me too. Spooky eh?

 

P

Postman Pat

Well-known member

Jul 24, 2007

6,971

Coldean

• Apr 22, 2016

• #10

The insurance companies know they have two types of customers:

1. Cash rich and time poor
2. Cash poor and time rich.

They rely on group 1 just auto renewing every year and not doing any digging around, but know group 2 will be on their case to try and get the best deal they can, but knowing if they can get somewhere in the ballpark of "best offer" people will generally stay to reduce the hassle.

 

Westdene Seagull

aka Cap'n Carl Firecrotch

NSC Patron

Oct 27, 2003

21,003

The arse end of Hangleton

• Apr 22, 2016

• #11

GOM said:

My wife's car insurance is with Esure and for 2 renewals in a row we could not beat the renewal price on any comparison site or the direct one's. This has left us totally confused, there must be something wrong in the world.

Click to expand...

Confused.com

 

brightn'ove

cringe

Apr 12, 2011

9,137

London

• Apr 22, 2016

• #12

Quite obvious is it not? To mug you out of more money.