The big insurance rip off!

JessopSmythe

Active Member
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:
 

Naomi McFadyen

New Member
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: :p

:wink:
 

yorkie19

Active Member
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

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

brucejones

New Member
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

Active Member
lynchie said:
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.
 
yorkie19 said:
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?
 

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