To continue from the previous page. After many weeks the insurance company telephoned me for a chat (30 minutes) and have now responded in writing.


They take the position that their renewal quote was correct “at the time it was produced” and there was nothing wrong with their process.

They justify the level of price difference because when I asked for a new quote on the quotation portal I was treated as a “new customer” and therefore qualified for their “new customer discount”.


It looks like the New Customer Discount is therefore 42%. Or expressed slightly differently “the exiting customer rip-off premium is 72%.  Who said insurance should be priced “on risk”?


They accept that they will review the marketing messages that state that this is the “best price” etc.  They also justify the inflated renewal quotes as this is “what all the insurers are doing”. They also sent me £10 towards my costs and thanked me for bringing this to their attention.  


The complaint has now been passed to Financial Services Ombudsman.  In my view there are faults at my previous insurer and there are systemic market faults that are to the detriment of customers.  The key issues raised with the Ombudsmen are:-

  1. The marketing messages that accompany the renewal quote are not true and fair
  2. They have built a renewal quote system that will quote inflated prices because of its design
  3. The level of discount provided to new customer is excessive and distorts the market
  4. They are unfairly disadvantaging the elderly or anyone that is not financially aware
  5. They are not treating customers fairly by blocking the web based quotes for those clients with renewal quotes


In the meantime, NEVER, NEVER allow any insurance to auto-renew.  Even if there are reasons why you must stay with your existing insurer you are best advised to telephone and have them re-quote for any renewal. If you do not have to stay with your existing insurer then always check at least one price comparison website to see if there are better offers.


By Geoff James

Updated 23/1/16

House (and other) Insurance Renewals

Cont...


Disclaimer


The information and opinions within this site are for information purposes only. They are not intended to constitute legal or other professional advice, and should not be relied on or treated as a substitute for specific advice relevant to particular circumstances. Local Planning Apps shall accept no responsibility for any errors, omissions or misleading statements on this site or for any loss which may arise from reliance on information contained within this site. No mention of any products, shall imply any approval or warranty as to the standing and capability of any such products on the part of Local Planning Apps or its clients.

© Copyright Geoff James 2015




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