The big insurance rip off!

[JessopSmythe]

Just renewed my home insurance.
Had the usual letter "Do nothing and we'll renew your cover automatically".

Out of curiosity I looked at the companies web site and found that the on-line quote was over £100 cheaper than the one that came in the post. When I phoned to ask them why, I was told that the online quote included an introductory discount. The call centre operative seemed quite surprised when I asked them to stop the automatic renewal as I intended to take up the policy via the internet quote.

Moral of the story? Never trust an insurance company :evil:

 

[lynchie]

i never trust people with that much money at their disposal anyway!

 

[Naomi McFadyen]

Typical thing that is...
I found that car insurance was cheaper to buy online; as a lot of things are nowadays...

The day will come where noone will be using the post or phone for anything... it'll all be electronic! because it'll be cheaper! :lol:

:wink:

 

[yorkie19]

Generally, insurance companies tend offer a cheaper deal in the first year to get potential customers to sign up. They work on the basis that most people won't want to do too much spade work to change their cover, so in subsequent years, the premiums either stay the same, or are increased. This way they cover the 'loss' in the first year.

There are several other tricks as well, but I'm starting to sound like I work for the UK's biggest insurance company, so I'll shut up.


Sam

 

[lynchie]

same thing with credit cards... if you keep changing around you can get all the cheap introductory rates! Gotta be done!

 

[brucejones]

Insurance

Couldn't agree more. I've just got Buildings & Contents for £136 less than my Buildings only quote!!

Moral - Nothing for Loyalty in Insurance

 

[Cantonian]

same thing with credit cards... if you keep changing around you can get all the cheap introductory rates! Gotta be done!

I heard somewhere that this can affect your credit rating.

 

[cornetblower]

Generally, insurance companies tend offer a cheaper deal in the first year to get potential customers to sign up. They work on the basis that most people won't want to do too much spade work to change their cover, so in subsequent years, the premiums either stay the same, or are increased. This way they cover the 'loss' in the first year.

You sound like an expert - you're not an actuary are you?